2012 city of north miami beach rfp letterpurchasing.citynmb.org/2012-25wellsfargoresponse.pdf ·...
TRANSCRIPT
The City of North Miami Beach
RFQ 2012-25Insurance Brokerage Services
Due Date: November 29th, 2012 at 2 P.M.
Rob Grand, ARM, ARe, Sales ExecutiveSharleen O’Toole, ACSR, CWCS, Account ExecutiveWells Fargo Insurance Services USA, Inc.2054 Vista Parkway, Suite 400West Palm Beach, FL 33411(561)655 5500(561)655-5500
Table of Contents
Section
- RFP Acknowledgement (Form 6.1)
Description
1. Cover Letter & Executive Introduction Company Background & Experience
Mission & Values Resources, Capabilities & Experience
Overall Approach & Methods
2. Business Licenses & Certificates of Insurance
3. RFP Proposal Forms Response to General RFP Questions
Service Team Information & Qualifications Team Structure Biographies
4. Proposed Fee for Service 5. Acknowledgements
- Statement of “No” Nid/RFP (Form 6.2) Not-Applicable - Reference Questionnaire (Form 6.3) - RFP Signature Page for Corporation (Form 6.4) - RFP Signature Page for Sole Proprietor or Partnership (Form 6.5) Not-Applicable - Drug Free Workplace Program (Form 6.6) - Soliciting, Giving and Acceptance of Gifts Policy (Form 6.7) - Non-collusion Affidavit (Form 6.8) - Source of Information (Form 6.9) - Respondents Certification (Form 6.10) - Sworn Statement on Public Entity Crimes (Form 6.11) - Signed Acknowledgement of Addendum 1 - Signed Acknowledgement of Addendum 2
Section 1
Cover Letter & Executive Introduction
Company Background & Experience Mission & Values
Resources, Capabilities & Experience Overall Approach & Methods
Wells Fargo Insurance Services
2054 Vista Parkway, Suite 400
West Palm Beach, FL 33401
(561)655-5500 phone
(561)655-5509 fax
http://www.WellsFargo.com/WFIS
November 27, 2012 City of North Miami Beach Procurement Management Division Attention: Brian O’Connor 17011 North East 19th Avenue, Room 315 North Miami Beach, FL 33162 Subject: RFP 2012-25 Insurance Brokerage Services Dear Purchasing Team for The City of North Miami Beach, Wells Fargo Insurance Services is delighted to have the opportunity to respond to The City of North
Miami Beach’s Request for Proposal.
Our report focuses on the many dimensions of value that support the objectives and requirements you
have outlined. Wells Fargo’s consultative, transactional, and administrative services are aligned with your
operational and strategic needs to minimize the impact and cost of risk and to deliver tangible,
measurable value.
When it comes to insurance and risk management, there are no one size fits all solutions. We understand
and embrace this simple truth and provide unique, dynamic, proactive solutions; personalized for each
client’s unique needs and preferences with equal measure.
The substance of our proposal includes responses to all RFP questions, as well as big picture descriptions
of our insurance and risk management services.
We recognize that partnerships, in business as in life, are built day by day through personal working
relationships that serve as a proving ground for service quality, reliability and value.
Every component of The City of North Miami Beach risk management and insurance program requires
technical expertise, marketplace savvy and thorough knowledge of Public Entity operations. Program
needs embrace best practices, optimization of cost of risk, application of Public Entity governance
principals, sensitivity to Public Entity issues and protection of life and property.
In providing risk management and insurance services for The City of North Miami Beach, your Wells
Fargo team will exhibit those qualities that have distinguished our work with you and others:
• Attention to Detail in Meeting Day-to-Day Needs
• Strategic Thinking and Creative Approaches
• Excellence in Program Design and Placement
• Expertise in Claims Management
• Safeguarding of The City of North Miami Beach
The Wells Fargo Insurance Services Team consists of many qualified professionals. These are the two
primary members of our team you will be working with directly:
Rob Grand, ARM, ARe Sharleen O’Toole
Commercial Sales Executive Account Executive
2054 Vista Parkway, Suite 400 2054 Vista Parkway, Suite 400
West Palm Beach, FL 33411 West Palm Beach, FL 33411
(561)838-9622 office (561)838-9641 office
(561)632-6344 mobile (561)339-6422 mobile
[email protected] [email protected]
Our world is infinitely changing (i.e. economy, insurance cycles, fiscal budgeting, operations, loss
experience, employment, statutory/legal rules, obligations and liabilities etc.).
Working together and sharing an equally progressive approach will consistently produce the most
winning solutions for The City of North Miami Beach.
We thank you for the opportunity you have provided through this RFP, and we look forward to furthering
our successful risk management partnership with The City of North Miami Beach.
Thank You,
Rob Grand, ARM, ARe Commercial Sales Executive National Public Entity Practice Wells Fargo Insurance Services (561)632-6344 mobile (561)838-9622 direct [email protected]
Cc: Tracy Kilinski, Branch Manager
Enclosure: WFIS response to The City of North Miami Beach RFP# 2012-25
Company Background and Experience
Wells Fargo Insurance Services, headquartered in Chicago, Illinois is the fifth largest insurance brokerage firm in the world, according to Business Insurance magazine, and the largest bank-affiliated insurance brokerage firm in the United States. We provide insurance brokerage and administrative services, as well as a wide range of financial and consulting services to thousands of satisfied clients. Today, we have approximately 200 offices across the nation with more than 8200 professionals who place more than $15.5 billion in risk premiums for our clients.
World's 10 Largest Insurance BrokersRanked by 2010 Brokerage Revenues
Rank Company 2010 Brokerage Revenue1 Aon Corp. 10,606,000,000$ 2 Marsh & McLennan Cos. Inc. 10,596,000,000$ 3 Willis Group Holdings P.L.C. 3,300,000,000$ 4 Arthur J. Gallagher & Co. 1,789,884,000$ 5 Wells Fargo Insurance Services 1,649,538,000$ 6 Jardine Lloyd Thompson 1,137,730,760$ 7 BB&T Insurance Services Inc. 1,078,576,900$ 8 Brown & Brown Inc. 966,917,112$ 9 Lockton Cos., LLC 8,268,570,004$
10 Hub International Ltd. 761,577,000$
Source: July 2011 Business Insurance
Wells Fargo & Company has been selling insurance products and serving clients since 1929. Wells Fargo Insurance Services is a division of Wells Fargo & Company (NYSE: WFC), a diversified financial services company with $1.3 trillion in assets, providing banking, insurance, investments, mortgage, and consumer finance through more than 10,000 stores. Please visit www.wellsfargo.com for more information on our parent company.
With Wells Fargo Insurance Services, you get the experience of a large broker with the personal attention and service of a local broker. We invite you to learn more about our company and the products and services we offer by going to our website, wellsfargo.com/wfis.
Mission and Values
At Wells Fargo Insurance Services, our mission is to be the leader in providing unparalleled client service, trusted advice, superior, and cost-effective insurance solutions to each and every one of our clients. We work with you personally to identify your risks and design the right comprehensive insurance solutions to satisfy your insurance needs.
Our goal is to provide an array of services and innovative solutions, help our clients develop strategies for managing risk, and build and evaluate competitive programs – while maximizing financial performance. Our decentralized structure allows each Wells Fargo Insurance Services office to take an entrepreneurial approach to serving clients, while drawing on a regional, national, and international network of experts. We provide our clients with the same attentive, responsive, hands-on service, and expertise that have always been our hallmark – coupled with national reach and resources – and always from a local service team.
Successfully reaching our goal requires total focus on the client and partnering as a collaborative team. It requires extraordinary strategy and execution. We measure success by the way we are viewed by each of our key constituencies:
• By our Clients for outstanding service and sound financial advice. Our clients are the center of everything we do.
• By our Team Members as a company that believes in people as a competitive advantage, a great place to work, an employer of choice, and one that encourages innovation.
• By our Communities as an active community leader, promoting economic development, services, education, social services, and the arts.
• By our Shareholders as the leader in return on equity, return on assets, and growth in revenue and profitability. Our team members are consistently encouraged to make decisions based on our culture and values.
• Ethics – We maintain the highest standards with clients, team members, stockholders, and our communities. We value and reward open, honest, two-way communication, and are accountable for and proud of our conduct and decisions.
• Client Satisfaction – We consider our client in all we do, and do what is right to build a long-term relationship.
• Leadership and Personal Accountability – Every team member contributes to our success and should lead by example and make decisions locally, close to the client.
• Diversity – We respect differences among team members, clients, and communities.
• Corporate Governance – Honesty, trust, and integrity are essential for meeting the highest standards of corporate governance, and are often the only things that distinguish us from our competitors in the minds of our clients.
• Best Practices – We constantly look for the best way to do something and adopt it wherever it applies to improve the client experience, increase revenue, and reduce expenses.
• Developing, recognizing, and retaining team members – It is not enough to have talented people; we all need to grow and develop.
We believe that honesty, trust, and integrity are essential for meeting the highest standards in corporate governance. This is even more important in the financial services industry because everything we do is built on trust. Our clients trust us to protect their assets and to keep their private information confidential. We are required to successfully pass compliance courses in privacy, information security, ethics and business conduct, and affirmative action each year.
Differentiating Factors According to a 2009 survey by the financial consulting firm Greenwich Associates, Wells Fargo Insurance Services USA, Inc. not only has more clients in the U.S. middle market than any other insurance broker, but it’s also one of the top middle market brokers in client satisfaction. The firm asked more than 9,000 companies with annual sales between $10 million and $500 million to rate their satisfaction with their insurance brokers.
Out of more than 300 middle market brokers evaluated, Wells Fargo Insurance Services was one of only five insurance brokers in the country to earn a National Greenwich Excellence Award. In addition, Wells Fargo Insurance Services was one of only two insurance brokers to sweep the satisfaction awards, by earning a national award, as well as the distinctions in all four regions (including the West, Midwest, South, and Northeast). This is where Wells Fargo Insurance Services has always excelled – performing in an advisory capacity, with the knowledge to assess risk and the resources to make sure our clients are fully protected. According to the Greenwich Associates survey, key satisfaction drivers for middle market clients include:
• Service, including visit frequency, follow-up, coordination of broker’s product specialists, effective support and management of client relationships, overall client service, Web site satisfaction, and whether the broker is working in the client’s best interest.
• Execution, including the ability to secure best pricing, value, desired levels of coverage, coordination of claims processing, and overall international capabilities.
• Knowledge, including understanding specific needs, knowledge of property and casualty products and services, creative risk management advice, customized and tailored solutions, broker’s objective evaluations of underwriters, and ability to evaluate coverage needs. Wells Fargo Insurance Services has consistently demonstrated that it understands clients’ needs through:
• A Decentralized, Client-Centric Structure – local services with national reach
• Client Service Excellence – client retention rate over 92%
• A comprehensive selection of financial products from Wells Fargo that can be tailored to satisfy a variety of needs
• Employee benefit programs, services, and innovative solutions – helping clients maximize financial performance and value
• Network and e-commerce risk specialization and expertise
• Alternative collateral arrangements in the form of a possible captive or reinsurance trust
• A commitment to disclosure – we proactively provide complete transparency on our sources of income in our client relationships, including the source, type, and calculation of compensation, prior to the client’s purchase of insurance
• A team of experienced, licensed professionals – the average tenure is 10 years and the average industry experience is 15 years
• A commitment to protect the privacy and security of client information
Professional Standards Wells Fargo Insurance Services delivers quality services to our clients by understanding their needs and providing them with superior knowledge, market access, and services that meet or exceed client expectations. Our high ethical standards and outstanding team are what sets us apart in the insurance industry.
Your account team is charged with knowing your business and insurance needs and is best able to articulate those needs to prospective underwriters. In nearly all transactions, broking negotiations and decisions are made at the local level with full participation of your immediate account staff. From time to time we rely on colleagues’ specialized knowledge and personal expertise in given coverage areas to provide counsel, benchmark advice, and, on occasion, broking assistance. We do not use centralized broking centers designed to funnel business to underwriters who will maximize our revenues.
Disclosure Insurance is a highly regulated, competitive industry that fuels the U.S. economy and protects individuals and commercial entities from losses. There is nothing more important to our industry and to Wells Fargo Insurance Services than maintaining the trust of our clients and conducting business with the utmost integrity. We believe that our leadership role on disclosure should tie directly to our core values. Among these, we state that we:
• Value and reward open, honest, two-way communication
• Do what is right for the client
• Talk and act with the client in mind
• Exceed our clients’ expectations
Wells Fargo Insurance Services is proactively providing clients with complete transparency on standard and contingent commission income and is taking a leadership role using the National Association of Insurance Commissioners (NAIC) model act.
We receive compensation from the insurance companies we represent when placing your insurance. Our compensation is usually a percentage of the premium you pay for your insurance policy or bond (a “commission”), which is paid to us by the insurance companies for placing and servicing your insurance or bonds with them. Intermediaries, such as wholesale brokers, may sometimes be used to access certain insurance companies. Those intermediaries will allocate a portion of the compensation from the insurance companies to us and may, in some cases, be an affiliated company.
We receive payments from insurance companies to defray the cost of services provided for them, including advertising, training, certain employee compensation, and other expenses.
We earn interest on premiums received from you and forwarded to the insurance companies through our bank accounts.
Some of the insurance companies we represent may pay us additional commissions, sometimes referred to as contingent or bonus commissions, which may be based on the total volume of business we sell for them, the growth rate of that business, the retention rate, the claims loss ratio, or other factors considering our entire book of business with an insurance company for a designated period of time.
The amount of premium you pay for a policy may change over the term of the policy. For example, your endorsement requests will affect the premium. Should the premium for any of your policies change, the amount of compensation paid to us by the insurance company would change accordingly.
It is the policy of Wells Fargo Insurance Services to provide transparency of our sources of income in our relationships with our clients. We will provide disclosure on the source, the type, and calculation of our compensation for each client prior to their purchase of insurance. This disclosure will include sources of income to the retail operation and include income generated when a placement is made with a subsidiary of Wells Fargo Insurance Services.
Resources, Capabilities, Experience
Wells Fargo has a wealth of resources in to offer the Town within the requested Scope of Services and available to the West Palm Beach service team. The following describes Wells Fargo’s resources and capabilities. The Partial Client List demonstrates our experience.
Property Resources
Wells Fargo Insurance Services provides consulting and brokerage services on property placements. An in-depth review and analysis of your risks and exposures allows our property team to structure a program that achieves your risk management goals. We utilize our technical expertise and risk management tools to propose a plan that is finalized with the collaboration of our customers. Our goal is to partner with your risk management team and work together to ensure that all parties are involved in managing the property risks you face.
Our placement, consulting, and transaction services include:
Catastrophe Modeling – to determine and plan for potential losses from earthquake, hurricanes, terrorism and straight line wind.
Deductible Analysis – to determine whether any change in deductibles are appropriate, given past loss experience and potential future exposure.
Probable Maximum Loss (PML) and Maximum Foreseeable Loss (MFL) Analysis – the PML results are used to establish coverage layer breaks and the MFL analysis is used to determine appropriate limits to purchase.
Flood Zone Analysis – to determine whether a flood zone risk exists and to identify appropriate coverage limits.
Policy/Coverage Analysis – to evaluate whether existing coverage is sufficient or should be improved.
Business Interruption Analysis – to evaluate the impact of potential business interruption and determine the appropriate level of coverage to implement to keep your business operating.
Business Continuity Analysis – to assist in mitigating exposures in the event of loss.
Risk Control Resources
Risk identification, evaluation, and mitigation are essential to protecting your critical assets: people, brand integrity, reputation, and shareholder value. Risk mitigation encompasses loss prevention, loss control, and claims management. A risk control program can prevent losses and create a safer environment for your employees and business partners, improve operating efficiency, and reduce insurance costs.
Wells Fargo Insurance Services’ risk consultants have specific expertise across multiple specializations, including life safety, construction safety, ergonomics, violence prevention, business continuity planning, fire protection, and highly protected risks. With an average of more than 21 years of experience, our consultants deliver effective solutions to address your specific concerns.
Specialized risk control services
Ergonomics. Wells Fargo Insurance Services’ consultants partner with our customers to identify, target, and correct specific ergonomics issues and concerns. We incorporate both engineering and administrative controls to reduce workplace risk factors and increase overall productivity. We assist our customers in designing and re-designing projects to create work areas that are best suited to the staff and work processes. We also offer a variety of training programs to educate the workforce on ergonomic principles and human factors, combining lecture and hands-on activities to maximize adult learning and retention. Our philosophy is to use basic ergonomics principles to reduce injury, improve the overall work processes, and increase productivity. Programs are designed to sustain the improvements made after the consulting project has ended.
Behavior-Based Safety. To address other high-frequency claims and cost drivers typically found in retail and distribution operations (such as falls and cuts), we assist customers in implementing behavioral programs to encourage employees to use proper equipment and perform tasks correctly. A behavioral program would allow employees to define safe work methods and use positive reinforcement to enforce their use. Multiple studies have shown that well implemented behavioral programs significantly reduce claims and their associated costs.
Injury Prevention. Our process is to first identify the primary causes of injury and the areas in which they occur. We target those high frequency areas and develop customized solutions to best address and mitigate losses. Our expertise lies in creating programs tailored to our customers’ specific concerns and using existing protocols and employee and management involvement to ensure that our programs are fully integrated into the existing culture and environment. We can create customized programs addressing areas such as machine guarding; lockout; hazard communications; NFPA 101 Life Safety; manual materials handling; behavior-based safety; preventing slips, trips and falls; and violence prevention.
Safety Management. Our casualty specialists can provide a comprehensive examination of your operational exposures. This evaluation can reveal the strengths and weaknesses of existing safety programs, management systems, and operational controls. We will work with your management team to develop and implement solutions to reduce risk.
Training and Education. Safe work practices are the key to success of any loss prevention program. Job safety education has been shown to increase not only safety performance, but quality and productivity as well. We have developed management-
and employee-oriented safety programs for many specific industries. We maintain a technical resource library of the latest codes and applicable standards.
Fleet Safety. Wells Fargo Insurance Services’ Fleet Services provides customers with expertise in Department of Transportation (DOT) regulations and transportation best practices. Our consultants provide up-to-date information on state and federal regulations, provide driver training to comply with those regulations, and create customized policies specific to your business. Our goal is to provide customers and their drivers with the training and information necessary to enhance overall vehicle safety and ensure regulatory compliance.
Environmental. Our Environmental Consulting Practice offers a wide range of services, including site inspections, permit review, environmental sampling, overseeing the removal and installation of underground storage tanks, and preparing abatement and site characterization reports. We offer a comprehensive, three-tiered approach to environmental audits – pre-audit questionnaires to familiarize our consultants with the operations at the site; the physical survey; and an environmental impact assessment to identify any changes to the environment resulting from an organization’s activities, products, or services.
Property Protection Consulting. We assist our customers in evaluating risk to their assets and determining loss scenarios to better enable them to protect and adequately insure their assets. Services include benchmarking, analyzing loss experiences, cost-benefit analysis, plan review, code dispute, and loss investigations. We conduct interdependency studies and supply chain exposures to contingent business interruption exposures to determine vulnerabilities and solutions.
Business Continuity Services. Our consultants will help you systematically identify critical business functions, prioritize their impact on the business, and develop cost-effective recovery strategies to minimize disruptions to these operations. Our plans address seasonal issues, supply chain, vendor and customer agreements, as well as communication protocols. We also assist customers with plan maintenance and facilitate testing exercises. Our business continuity practice group is comprised of certified consultants with specific expertise in operational recovery, disaster recovery, emergency response, and crisis management.
Employee Benefits Resources
Employers want to attract and retain the best employees. Wells Fargo Insurance Services helps customers develop, implement, and measure the effectiveness of their employee benefit programs. Our goal is to provide an array of benefits services and innovative solutions, helping our customers develop strategies and build and evaluate competitive programs while maximizing financial performance and effectively managing risks. Keeping employers’ objectives in mind, Wells Fargo Insurance Services can help secure a full range of benefit offerings and provide consultative guidance and world-class customer service.
Our approach is innovative and yet personally tailored to each customer’s needs. In today’s environment of rising healthcare costs, we form collaborative partnerships with our customers with the focus on the success of our customers’ employee benefit programs. Our best practices are defined with an emphasis on consultation, analytics, quality assurance, and an engaged approach to every service we provide.
Claims Management Resources
It’s often said that a broker actually earns its keep when there is a claim. Every customer must expect their broker not only will submit a claim promptly, but follow its progress, provide direction and expertise, and serve as the customer’s advocate. The goal must be a fair settlement based on the circumstances and coverages available.
Our commitment to you is to assure that you receive prompt, fair and equitable handling on all of your claims. We monitor the services of the insurer to ensure that you are receiving professional quality service and to make sure that they are complying with the terms and conditions that have been negotiated on your behalf.
As part of the continuing follow-up on each claim, we evaluate loss reserves and recommend necessary changes through discussions with the company adjuster or with a file audit performed by an experienced audit team. Depending on the nature of the loss, we review each claim and reserve as necessary, but in no event longer than 90 days. We provide periodic loss runs and claim review as needed.
We will be accountable for the following services:
Establish or enhance your special account instructions for each line of business to ensure that claims are managed in accordance with your company’s policies and guidelines.
Develop loss reporting procedures to ensure that all claims are reported in a timely manner with the appropriate information. Where applicable, we will prepare written notice of claims, losses and lawsuits to insurance carriers.
Advise on the presentation of your claims, including coverage reviews and development of proof of loss.
Review insurers’ reservation of rights, denials, disclaimers, requests for non-waivers, and questions.
Advocate and negotiate with insurers on disputed coverage issues to obtain favorable results.
Aid in identifying experts in various disciplines to provide claim accounting, loss development, and expert evaluations.
Monitor and consult on claims that involve high severity or adverse consequences to ensure proper investigation, aggressive management, and prompt resolution.
Arrange meetings or conference calls with insurance company representatives to resolve issues.
Assist with claim settlements and collecting insurance proceeds, including encouraging advance payments on large losses.
Conduct statistical analysis and develop loss reports to evaluate claim costs to assist in the reduction of your total cost of risk.
Establish customer-specific loss handling procedures with insurers, which allows Wells Fargo Insurance Services to be fully engaged in the adjustment process. Our active involvement allows us to assist you in getting claims closed in the appropriate amount and in a timely manner.
Our staff serves a range of customers with significant exposure to loss. The Wells Fargo Insurance Services risk control, claim, and risk management staff work closely with customers in reviewing current procedures and in designing or implementing procedures to deal with a catastrophe. We will keep you informed as each claim progresses by phone or email, answer any of your questions, and advise you concerning each step of the adjustment process.
Advanced Risk Solutions Resources
Efficiently managing capital and risk has become an increasingly important part of your business. As capital and insurance markets continue to converge, new and better ways to finance, transfer, or hold risk are being developed. These techniques can lead to improved ways to structure capital toward a more successful business operation.
Wells Fargo Insurance Services’ Advanced Risk Solutions Group helps you navigate the range of products and services this emerging marketplace can now provide. These solutions fall into two main areas—alternative products and alternative markets.
Alternative products provide flexibility because they address specific insurance issues that can’t be handled through traditional means. The Advanced Risk Solutions Group has expertise in finite reinsurance, including:
Loss portfolio transfer and adverse loss covers
Double-trigger programs
Contingent capital
Securitized assets
Weather and credit derivatives
Enterprise risk solutions
Double-trigger programs cover the risk associated with a loss charged against any liability insurance policy in effect for any period, from the time a covered person was first exposed to a harmful substance to the time the injury is finally manifested.
Contingent capital is an unfunded form of finance risk triggered by the occurrence of a named peril. Though it must be repaid over time, the funding aids recovery when access to capital may be severely limited.
Weather and credit derivatives, unlike insurance, are paid out regardless of actual loss if the trigger event occurs. Extreme rainfall is one area of weather derivative protection; bankruptcy is categorized under credit derivatives.
Enterprise risk solutions combine various risks into one policy, an extension of the multiline/multiyear concept. Cost savings are due to diversification scoring, involving fewer markets, and more efficient use of retention and deductibles.
Alternative markets provide additional flexibility. Wells Fargo Insurance Services can help your company increase flexibility and provide additional options in addressing your overall business risk needs. We can assist you with the expertise to consult on and structure all of the major alternative markets, including single-parent and group captives, self-insured pools, and risk-retention groups.
Captives provide multinational corporations with protection against the risk of loss, damage, or third party liabilities. They are insurance companies formed with a single purpose: to insure or reinsure the company that formed the captive in the first place. Captives generally offer lower insurance costs, improved cash flow, and the ability to insure risk that is otherwise uninsurable.
Using corporate-finance and capital-market techniques, Wells Fargo Insurance Services’ Advanced Risk Solutions Group can help you find and secure the additional resources you need to achieve an uncommonly efficient capital structure, while addressing even the most difficult exposures. Close ties with nontraditional markets and in-depth knowledge of a broad range of industries allow us to satisfy your business needs through optimal risk transfer mechanisms.
Professional Risk Group Resources
The Wells Fargo Insurance Services Professional Risk Group provides critical risk management tools and solutions to address the financial exposures faced by private and public companies on a global basis. Our professionals not only have extensive insurance experience, but also have in-depth industry knowledge. This allows us to deliver solutions specifically tailored to our customers.
The Professional Risk Group team has technical expertise in executive liability products, including:
Directors’ & Officers’ Liability
Professional Liability, Errors & Omissions Liability
Employment Practices Liability
Fiduciary Liability
Crime Coverage
Internet Professional Liability
Mergers and Acquisitions
Environmental Liability
Our team will help you identify exposures and provide creative solutions, including risk transfer programs. Our services include:
Creation of a risk profile that identifies your current and potential exposures
Analysis of your current insurance program to identify gaps in coverage
Recommendations for program design
Marketing and placement of insurance programs that draws upon our extensive knowledge and relationships in the insurance industry
Claims advocacy
Consistent on-going servicing of all of your risk management needs through a single point of contact
Protecting your business in today’s ever-changing regulatory environment is difficult. We are committed to providing our customers with creative risk management solutions to help them navigate the increasingly complex area of financial exposures.
Partial Municipality Client List - West Palm Beach Office Wells Fargo Insurance Services has worked for many years with several municipalities and governmental entities. Wells Fargo currently services 23 special districts, 8 cities and towns, and 65 community development districts.
Municipality
Contact Person
Indian Trail Improvement District Tanya Quickel
South Broward Drainage District Kevin Hart
Seacoast Utility Authority Andrea Holmes
Town of Indian River Shores Judy Lewis
Town of Manalapan Linda Stumpf
Town of Bay Harbor Islands Alan Short
Town of Haverhill Janice Rutan
Port of Palm Beach Paul Zielinski
Coquina Water Control District Danny Faircloth
Cypress Grove Water Control District Chuck Walsey
Plantation Acres Improvement District Angel Alvarez
Central County Water Control District Lynn McCulough
(83) Special Districts
(3) Fire Districts
Overall Approach and Methods
Our approach and methods are described below and detailed in the Risk Management Plan and Sample Service Calendar included in Section 2. These exhibits are working documents and will be customized to meet the needs of the Town.
Marketing
Our method of marketing is based on the premise that “yes” should be the only word in an underwriter’s vocabulary. This philosophy underscores the importance of the process we undertake with customers before we engage the underwriting community. Whether it inside the Town’s current PGIT program or outside, we prepare a submission that will get to the top of the pile, anticipate underwriters’ objections, and provide quality, accurate data to allow them to say “yes.”
We have developed a disciplined process which drives all negotiations with the insurance marketplace.
Needs analysis – We work to understand you, your organization, your risk issues, and your needs.
Underwriting data – Complete and accurate underwriting data is critical to a favorable and timely marketing result. We will help you gather and prepare the necessary underwriting information to obtain proposals.
Loss analysis and forecasting – We focus on both quantitative and qualitative analysis of loss information because we know that the qualitative data has material implications on the final financial forecast/budgeting process.
Limits and retention analysis – A critical next step is reviewing the appropriateness of limits and risk retention levels. We work with you to gain a complete understanding of your budget and cost allocation constraints so that we can help build flexibility into our program design for you.
Program design – Based on the underwriting data, quantification of variable costs, and identification of optimal risk transfer points, we craft the overall design of your program. Design issues addressed would include the program structure, coverage requirements, pricing parameters, collateral requirements, account service requirements, claims service requirements, and risk control needs.
Underwriting submission – This jointly prepared submission will cover a detailed description of the marketing objectives, the program design desired, pricing targets (if appropriate), service requirements, a detailed description of your operations, a comprehensive description of your risks, any necessary financial information, specifications of coverage needs for each line of coverage, including exposure schedules and underwriting data, desired wording for all special coverage extensions and modifications, and a summary of loss history by line of business.
Evaluating Financial Strength and Capacity of Insurance Markets
Wells Fargo Insurance Services is not a guarantor of the solvency of carriers with which our agents place business. However, our objective is to place customer risks with insurers and reinsurers that are financially sound. We authorize only carriers that we believe, at the time of placement, have the financial ability to fulfill their claim payment obligations to our customers. We base our recommendations on in-depth financial analysis and other relevant information that is available at the time of placement.
Wells Fargo Insurance Services has appointed a group of experienced insurance professionals to serve on a Market Security Committee. This committee is responsible for establishing and utilizing guidelines for the selection of insurers and supporting Wells Fargo Insurance Services team members in their efforts to utilize financially sound insurers. In assessing the financial strength of insurers, the committee relies upon the opinions and assessments of recognized rating agencies and other carrier review companies.
Account Service and Advocacy
Customer needs analysis – We understand the Town’s unique needs and are able to respond to those needs through the appropriate product and service offerings.
Industry knowledge – We understand the current issues concerning public entities so that we can develop and maintain a responsive and dynamic risk management strategy.
Service delivery – We will deliver high quality service, within your expected timeframes, to meet or exceed your expectations.
Troubleshooting – Resolve issues on your behalf within Wells Fargo Insurance Services, with the insurance carriers, or other service providers.
Program pricing and placement – Obtain competitive pricing in the market, placed with good security.
Compliance – Ensure strict adherence to laws and regulations involving the placement of insurance policies, payment of premiums, and giving and receiving of notices.
Partnership Development
Stewardship reviews – We will provide an annual stewardship review that summarizes the services provided in the previous year, special projects undertaken, coverage recommendations, and emerging issues.
Customer satisfaction – We ask for feedback on our performance annually as a minimum.
Procedural issues – We ensure that there are written protocols in place, especially for claims handling.
Policy Servicing
As part of our ongoing assistance in managing your risks, your account team will:
Conduct an in-depth review of all policies to ensure coverage is correct and adequate
Negotiate payment terms and conditions prior to binding coverage
Coordinate and develop underwriting relationships between the customer and the insurance carriers or service providers
Verify accuracy of experience modifications, audits, and deductible or retrospective calculations
Analyze leases and contracts for potential impact on the insurance program
Establish a formalized Certificate of Insurance program for vendors
Issue Certificates of Insurance and auto ID cards
Communication and Reporting
Our team of professionals will be available to meet regularly with your staff. We believe regular meetings are important to address ongoing and changing exposure and frequent communication enhances our ability to satisfy your business needs.
Stewardship Reporting
Wells Fargo Insurance Services will provide you with an annual stewardship report. In addition to setting objectives, the report illustrates how our service team manages your risk management program and your total cost of risk.
It reviews:
Key accomplishments since the relationship inception
Status of goals and action plans for the current year, including our recommended renewal objectives
A total cost-of-risk assessment, including a summary of your premiums and losses by line of coverage, which reviews and describes the comparative costs and our fees
An analysis of the current insurance market with projections of future conditions
Section 2
Business Licenses & Certificates of Insurance
ACORD CERTIFICATE OF LIABILITY INSURANCE DATE (MM/DD/YY)
THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW.
COMPANIES AFFORDING COVERAGE
PRODUCER
COMPANY A
COMPANY B
COMPANY C
INSURED
COMPANY D
COVERAGES THIS IS TO CERTIFY THAT THE POLICIES OF INSUANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED, NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS.
CO LTR TYPE OF INSURANCE POLICY NUMBER POLICY EFFECTIVE
DATE (MM/DD/YY) POLICY EXPIRATION
DATE (MM/DD/YY) LIMITS
GENERAL LIABILITY GENERAL AGGREGATE $ COMMERCIAL GENERAL LIABILITY PRODUCTS – COMP/OP AGG $ CLAIMS MADE OCCUR PERSONAL & ADV INJURY $ OWNER’S & CONTRACTOR’S PROT EACH OCCURRENCE $ FIRE DAMAGE (Any one fire) $
MED EXP (Any one person) $ AUTOMOBILE LIABILITY
ANY AUTO COMBINED SINGLE LIMIT $
ALL OWNED AUTOS
SCHEDULED AUTOS
BODILY INJURY (Per person) $
HIRED AUTOS
NON-OWNED AUTOS
BODILY INJURY (Per accident) $
PROPERTY DAMAGE $
GARAGE LIABILITY AUTO ONLY - EA ACCIDENT $ ANY AUTO OTHER THAN AUTO ONLY: EACH ACCIDENT $
AGGREGATE $ EXCESS LIABILITY EACH OCCURRENCE $ UMBRELLA FORM AGGREGATE $ OTHER THAN UMBRELLA FORM
$
WORKERS COMPENSATION AND EMPLOYERS’ LIABILITY WC STATU-
TORY LIMITS OTH-ER
EL EACH ACCIDENT $
INCL EL DISEASE – POLICY LIMIT $
THE PRIORIETOR/
PARTNERS/EXECUTIVE
OFFICERS ARE: EXCL
EL DISEASE – DISEASE $
OTHER
DESCRIPTION OF OPERATIONS/LOCATIONS/VEHICLES/SPECIAL ITEMS
CERTIFICATE HOLDER CANCELLATION
SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE
EXPIRATION DATE THEREOF, THE ISSUING COMPANY WILL ENDEAVOR TO MAIL DAYS
WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE LEFT, BUT FAILURE TO
MAIL SUCH NOTICE SHALL IMPOSE NO OBLIGATION OR LIABILITY OF ANY KIND UPON THE
COMPANY, ITS AGENTS OR REPRESENTATIVES.
AUTHORIZED REPRESENTATIVE
ACORD 25-S (1/95) ACORD CORPORATION 1988
04/01/10
1-404-531-5400
404-1FICI-13
CertRenewal
Atlanta, GA 30342
Aggregate
Each Occurrence
including Wells Fargo Insurance Services USA, Inc.
Minneapolis, MN 55479
Wells Fargo & Company and Its Subsidiaries
03/31/10
Professional Liability
B
A
Sixth & Marquette
Wells Fargo Center (MAC N9305-144)
Wells Fargo Insurance Services USA, Inc.
(Reinsured by Steadfast Insurance Company)
Superior Guaranty Insurance Co. of Vermont
EVIDENCE OF COVERAGE 30
Suite 2501100 Johnson Ferry Road
100,000,000
100,000,000
RE: WELLS FARGO INSURANCE SERVICES USA, INC., 2054 VISTA PARKWAY, SUITE 400, WEST PALM BEACH, FL 33411-2718.
15023570
04/01/13
ACORD CERTIFICATE OF LIABILITY INSURANCE DATE (MM/DD/YY)
THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW.
COMPANIES AFFORDING COVERAGE
PRODUCER
COMPANY A
COMPANY B
COMPANY C
INSURED
COMPANY D
COVERAGES THIS IS TO CERTIFY THAT THE POLICIES OF INSUANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED, NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS.
CO LTR TYPE OF INSURANCE POLICY NUMBER POLICY EFFECTIVE
DATE (MM/DD/YY) POLICY EXPIRATION
DATE (MM/DD/YY) LIMITS
GENERAL LIABILITY GENERAL AGGREGATE $ COMMERCIAL GENERAL LIABILITY PRODUCTS – COMP/OP AGG $ CLAIMS MADE OCCUR PERSONAL & ADV INJURY $ OWNER’S & CONTRACTOR’S PROT EACH OCCURRENCE $ FIRE DAMAGE (Any one fire) $
MED EXP (Any one person) $ AUTOMOBILE LIABILITY
ANY AUTO COMBINED SINGLE LIMIT $
ALL OWNED AUTOS
SCHEDULED AUTOS
BODILY INJURY (Per person) $
HIRED AUTOS
NON-OWNED AUTOS
BODILY INJURY (Per accident) $
PROPERTY DAMAGE $
GARAGE LIABILITY AUTO ONLY - EA ACCIDENT $ ANY AUTO OTHER THAN AUTO ONLY: EACH ACCIDENT $
AGGREGATE $ EXCESS LIABILITY EACH OCCURRENCE $ UMBRELLA FORM AGGREGATE $ OTHER THAN UMBRELLA FORM
$
WORKERS COMPENSATION AND EMPLOYERS’ LIABILITY WC STATU-
TORY LIMITS OTH-ER
EL EACH ACCIDENT $
INCL EL DISEASE – POLICY LIMIT $
THE PRIORIETOR/
PARTNERS/EXECUTIVE
OFFICERS ARE: EXCL
EL DISEASE – DISEASE $
OTHER
DESCRIPTION OF OPERATIONS/LOCATIONS/VEHICLES/SPECIAL ITEMS
CERTIFICATE HOLDER CANCELLATION
SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE
EXPIRATION DATE THEREOF, THE ISSUING COMPANY WILL ENDEAVOR TO MAIL DAYS
WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE LEFT, BUT FAILURE TO
MAIL SUCH NOTICE SHALL IMPOSE NO OBLIGATION OR LIABILITY OF ANY KIND UPON THE
COMPANY, ITS AGENTS OR REPRESENTATIVES.
AUTHORIZED REPRESENTATIVE
ACORD 25-S (1/95) ACORD CORPORATION 1988
30
10,000,000
Wells Fargo Insurance Services USA, Inc.
04/01/15
03/31/10
MWZY 58768
1-404-531-5400
MWC 116599 00
Minneapolis, MN 55479
1,000,000
10,000,000AX
10,000,000
X
Atlanta, GA 30342
A
04/01/10
EVIDENCE OF COVERAGE
1,000,000
10,000,000
including Wells Fargo Insurance Services USA, Inc.Wells Fargo & Company and Its Subsidiaries
MWTB 20922
Suite 250
10,000,000
1100 Johnson Ferry Road
X
15019669
1,000,000
Old Republic Insurance Co. (NAIC #24147)
X
Sixth & Marquette
Wells Fargo Center (MAC N9305-144)
04/01/10
sapeterson
X
A
04/01/15
X
1,000,000
X
04/01/15
04/01/10
Section 3
RFP Proposal Forms
Response to General RFP Questions Service Team Information & Qualifications Team Structure & Biographies
DESCRIPTION OF COMPANY AND SERVICES
Please address each of the following items:
1. Provide information on the history and organizational structure of your firm including the year established, ownership, and principal officers. Wells Fargo Insurance Services, headquartered in Chicago, Illinois is the fifth largest insurance brokerage firm in the world, according to Business Insurance magazine, and the largest bank-affiliated insurance brokerage firm in the United States. We provide insurance brokerage and administrative services, as well as a wide range of financial and consulting services to thousands of satisfied clients. Today, we have approximately 200 offices across the nation with more than 8200 professionals who place more than $15.5 billion in risk premiums for our clients.
World's 10 Largest Insurance BrokersRanked by 2010 Brokerage Revenues
Rank Company 2010 Brokerage Revenue1 Aon Corp. 10,606,000,000$ 2 Marsh & McLennan Cos. Inc. 10,596,000,000$ 3 Willis Group Holdings P.L.C. 3,300,000,000$ 4 Arthur J. Gallagher & Co. 1,789,884,000$ 5 Wells Fargo Insurance Services 1,649,538,000$ 6 Jardine Lloyd Thompson 1,137,730,760$ 7 BB&T Insurance Services Inc. 1,078,576,900$ 8 Brown & Brown Inc. 966,917,112$ 9 Lockton Cos., LLC 8,268,570,004$
10 Hub International Ltd. 761,577,000$
Source: July 2011 Business Insurance
Wells Fargo & Company has been selling insurance products and serving clients since 1929. Wells Fargo Insurance Services is a division of Wells Fargo & Company (NYSE: WFC), a diversified financial services company with $1.3 trillion in assets, providing banking, insurance, investments, mortgage, and consumer finance through more than 10,000 stores. Additional information on our parent company is available here: http://www.wellsfargo.com and http://wfis.wellsfargo.com/Pages/default.aspx
With Wells Fargo Insurance Services, you get the experience of a large broker with the personal attention and service of a local broker.
2. Identify and describe pertinent experience of the firm, including servicing
other public sector accounts, if any. Provide the percentage of your firm’s current clients that are public employers. Describe your experience and relationship with the City’s insurance carriers. Wells Fargo Insurance Services has a national public entity practice group with members from the various operations around the country. The purpose of this group is to provide guidance and assistance for those individuals who are dedicated to spending at least 50% of their time working with Public Entity Clients. The assistance comes with the coordination of memberships and support of national groups such as PRIMA, and the establishment of resources such as specific loss control tools, and educational material that are focused on the special needs of our public entity clients. The national practice also allows the sharing of information and common issues among a larger audience that often results in better solutions to problems as we use the collective experience of a much larger group of clients, loss control engineers, and market resources.
Wells Fargo Insurance Services has over 500 public entity clients across the nation. As a top 4 Global Insurance Broker we have some of the strongest relationships and largest books of business with all of the top domestic and international insurance industry carriers.
3. Provide the names of the agent/brokers to perform the work of the City and a brief statement as to why each agent/broker is qualified to provide the services herein. Identify areas of expertise for each consultant, resume, citing experience and references, including licenses, designations/affiliations and any other pertinent qualifications. Identify the other employees who will be assigned to service the account of the City. Highlight their experience in the service area they will provide, along with resumes.
The dedicated team chart and biographies are attached.
TEAM CHART WELLS FARGO INSURANCE SERVICES
Rob Grand, ARM, ARe
Sales Executive (561)838-9622
Marketing
Paula Burns Marketing
(561)848-9677 Paula.Burns @wellsfargo.com
Josephine Maturo, CIC, AAI
Senior Vice President Director of Marketing
(813)639-3046 [email protected]
Technical &
Administrative Service
Sharleen O’Toole, ACSR, CWIS Account Executive
(561)838-9641 [email protected]
Susan Casey, ARM, AIS, CPIA Account Executive
(561)838-9689 [email protected]
Claims
Marjorie Sicilliano CPL, ACSR, AIC, PCA
Claims Manager (561)838-9607
Patricia Derosa Claims Representative
(561)838-9622 [email protected]
Rob Grand, ARM, ARe Commercial Sales Executive Rob Grand has been in the commercial insurance business for more than 18 years. His
professional tenure includes Actuarial & Underwriting experience with Reliance National
Insurance Company as well as senior leadership roles with some of the Top Global Retail &
Wholesale distribution firms; including NAPCO, Willis and Arthur J. Gallagher. Rob has
extensive expertise with Not-For Profit, Public Entity, Commercial Real Estate,
Construction, Healthcare, Scholastic/Education, and Manufacturing. His relentless pursuit
of creative and proactive solutions has resulted in extraordinary results and long-standing
client relationships. Rob graduated from The College of Insurance with a BBA in Insurance,
and holds multiple professional insurance designations, including Associate in Risk
Management (ARM) and Associate in Reinsurance (ARe) from The American Institute for
CPCU.
Sharleen O’ Toole, ACSR, CWIS Account Executive Over 20 years experience In Commercial Insurance with the focus on providing superior
customer service. Strong Marketing skills and the ability to work under pressure. Experienced in
handling small to very large accounts. The focus for the last 12 years has been on very large
accounts. Accounts include large property accounts, oil and gas, contracting & manufacturing
and for the last 5 years various Municipality Accounts. Experienced in rounding out existing
accounts and selling finished proposals for new business and renewals. Excellent
communication skills and work ethic. Technical skills include TAM, AMS-AFW, Vison &
NeXsure, Microsoft Word, Excel, Outlook, Internet Explorer and several on line company rating
systems.
PROFESSIONAL LICENSES & DESIGNATIONS
• Florida Licensed 220 Agent • CWIS (Certified Workers Compensation Specialist) • ACSR
SUSAN M. CASEY, ARM, AIS, CPIA Account Executive/Insurance Program Manager Susan Casey has over 40 years experience in Property and Casualty insurance having started her
career with the Aetna Casualty and Surety Insurance Company in Boston, MA. She moved over
to the agency field holding positions of Commercial Lines Manager, Marketing Director, and
Account Executive. She holds the designation of ARM, Associate in Risk Management, AIS,
Associate in Insurance Services, and CPIA, Certified Professional Insurance Agent.
Susan has been employed as an Account Executive/Insurance Program Manager with Wells
Fargo Insurance Services since 1993.
Paula Burns Marketing Specialist
Current Responsibilities
As a Marketing Specialist, Paula Burns is regularly involved with the selection of insurance
markets, programs, captives and alternative risk options for the unique needs of each client.
Paula brings a thoughtful and strategic approach to market planning for all new and existing
clients.
Areas of Expertise
Commercial Property & Casualty Insurance Brokering, Marketing, and Program Design
Paula has worked in risk management and the insurance industry since 2002
Patricia DeRosa Claims Representative
Patricia started working at Acordia in July of 2002 and had eighteen years of claims
experience which includes the following: Patricia takes new loss information, reviews
and process claims, communicate with clients, claimants, providers, team members and
company representatives and follow-up in terms of claims status and payments made.
She will also verify coverage in relation to the loss; complete and submit claims reports
and supporting documentation to insurer. She will generate appropriate claim file
documentation throughout the duration of the claim by completing required checklists,
maintaining files and inputting policy detail and act as liaison between the client, sales
team and carrier when necessary. She will assist insureds throughout the loss as needed
and assist producers with loss history information.
Insurance Licenses 5-20 – All Lines Claims Adjuster Professional Memberships Palm Beach Claims Association
Marjorie Siciliano, CPL &, ACSR, AIC, PCA Claims Manager
Experience
Marjorie joined Wells Fargo Insurance Services in December Of 1995.
Twelve years of claims experience:
• Communicate with clients, claimants, providers, team members and company
representatives and follow-up in terms of claims status and payments made
• Generate appropriate claim file documentation throughout the duration of the claim by
completing required checklists, maintaining files and inputting policy detail
• Verify coverage in relation to the loss; complete and submit claims reports and
supporting documentation to insurer
• Act as liaison between the client, sales team and carrier when necessary
• Take new loss information, review and process claims
• Assist insureds throughout the loss as needed
• Assist producers with loss history information
Insurance Designations
CPLA certified professional insurance agent
ACSR accredited customer service representative
AIC associate in claims
PCA professional claims adjuster
Insurance Licenses
4-40 license customer representative
5-20 license independent adjuster—all lines
Client Contact Title Phone EmailThe Port of Palm Beach Paul Zielinski Chief Financial Officer (561)383-4147 [email protected] Trail Reference Tanya Quickel Dsitrict Administrator (561)793-0874 [email protected] Utility Authority Andrea Holmes Director of Administrative Services (561)627-2900 [email protected] Broward Drainage District Kevin Hart District Director (954)680-3337 [email protected] Town of Manalapan Patty Barbier Accounting Clerk (561)383-2546 [email protected]
4.
5.
Outline the program the account team will implement in working with the City administration and staff to provide transition in new and/or existing programs, to communicate the scope of benefits program with employees. Outline the administrative support and organization included by the agent services team for carrier changes.
How will you manage Costs? Citing specific examples from your relevant experience, explain the firms approach to assisting local governments to maximize benefits for employees while minimizing financial impact of rising health insurance premiums. Detail innovative concepts your firm has employed in this area.
6. Select only accounts that City of North Miami Beach can contact to discuss your reports and performance and all aspects of consulting services that your firm has provided for at least four consecutive years.
7. Explain your strategy when bidding out the plan, how often will your firm bid
out the insurance plans? Describe the firm’s methods for development of specifications to obtain competitive insurance policy quotes and the means of communicating with the City’s administration the results. Outline the calendar for the process to be followed.
Specifications, Bidding Strategy, Frequency of Marketing Plans: Specification Development should be a collaborative process between the City and your insurance brokerage and risk management partner(s). There are many steps to this process, including these highlights:
• Review: State of the Insurance & Reinsurance Market • Review: Self Insurance Qualification, Regulation, Administration Changes and Benefits • Organize complete and updated underwriting data (Exposures, Loss Experience Summaries
etc.). • Adjust: Deductibles, Retentions, Insured Values, Liability Limits, Loss Limits etc. • Review the Obligations and Interests to Purchase or Not Purchase Insurance • Update the Cities current tolerance and appetite for Risk. • Compare the economics for purchasing insurance or self insuring • Benchmark Best In Class Specifications for your Peer Group
Final Specifications and Bidding Strategy will be predicated on all these points. For the most part, there isn’t reason to go through a full market exercise for all lines of coverage every year. Historically a full market exercise can make sense every 3 to 5 years. The question of marketing any lines of coverage more frequently should be based on the dynamics of the insurance market, comparing trending premiums, year over year, with valid reasons to consider changing relationships with the incumbent insurance carrier partners. Communication: We will communicate the competitive bidding results with the City’s Administration in their preferred fashion. This will likely include a combination of email, phone and in person review delivering written & oral presentation of marketing efforts, program updates and the one or more options available for final binding.
Calendar & Marketing Time Table:
Wells Fargo Insurance Services employs a disciplined and consistent approach to the marketing effort that minimizes redundancy in the process and results in more efficient and responsive service to our customers.
Days to inception date
165 days Expiration list of policies and services for upcoming renewals provided to Account Team and
to Marketing Unit Manager for review and assignment of marketing roles
145 days Account Manager orders currently valued loss runs for past five years
Order updated exposure and COPE information from customer
Marketing Team produces the 120-day Marketing Time Line for the Customer Service team
120 days Loss summaries are prepared within 30 days of the request to the carrier
The 120-day Account Team Strategy Meeting is held to discuss the needs of the customer,
the strategy for finding solutions, opportunities for program and coverage enhancements,
and potential markets
Select desired coverages, extensions and limits based on discussions with the customer
60 to 90 days Prepare coverage specifications, submission documents, and cover letter to carriers
E-mail or deliver submissions to markets
Conduct discussions and meetings with underwriters as necessary, and arrange inspections
for underwriters, if necessary
30 to 60 days Obtain quotes; negotiate terms, conditions and pricing; review and compare quotes to the
program design
Marketer and Account Team meet and develop the proposal
Complete the proposal, including market responses, program comparison, cost comparison
vs. expiring program, and program total cost comparison
10 to 30 days Deliver the proposal to the customer or prospect and secure placement order
Obtain signed copies of the Property Statement of Values, Business Interruption Worksheets
and Service Agreement
Confirm payment terms, obtain the down payment and signature on the agreement if
premium finance is desired
0 to 10 days Order to bind coverage is provided to marketing, coverage confirmation and binders are
delivered, explained to the customer, and signature is secured prior to the expiration date
Certificates of insurance and auto ID cards are issued
Provide Claims Consultant with Special Claims Handling Guidelines
8. How would you assist City of North Miami Beach, with compliance
requirements and issues? Wells Fargo Insurance Services will assist the City of North Miami Beach with all compliance requirements and issues related to insurance, risk management and the scope of services outlined in the RFP.
9. Describe how your firm will review plan documents for compliance with applicable laws and contracted agreements. Describe your firm’s commitment to the responsibility for representing accurately the scope of coverage being made available by the carriers recommended and selected in the quoting process. Wells Fargo will review the scope of services and specifications requested from the carriers against what they ultimately provide in the form of quotes, binders, insurance policies and endorsements. We’re committed to compliance with applicable laws, fulfilling requirements of contracted agreements, exceptional attention to detail, delivery and service.
10. How will you assist with services problems/claims problems? Does your firm provide a toll free number and/or internet access and support? What access will be made available to administrators? Outline the response process and timeframe for addressing needs and/or concerns of the City’s administration. Wells Fargo Insurance Services will partner with the City to meet and exceed all risk management, service, claims and budgetary goals. We will involve the risk manager and appropriate City administration in planning, critical decision making, and all activities to service the City. It’s our job to give the City the risk management tools, resources, and expertise it needs. We have toll free numbers available, as well as internet access and support. Administrators are offered the availability to access all relevant insurance documents through the secure and password protected Wells Fargo Web Platform. Access will only be made available to those who are authorized to have administrative rights. We will attend any Board meeting as requested by the City, including when renewal policies are discussed or a part of the agenda to help explain proposal specifics and industry trends. Wells Fargo is dedicated to meet and exceed all the needs and expectations of The City of North Miami Beach. Our team is prepared to respond and resolve any problems and claims that will arise. We will adjust dedicated staffing as needed and deliver on our promise to always share appropriate urgency to address all needs and concerns from the City’s administration. Claims Claims Consulting Introduction Wells Fargo Insurance Service’s Claims Consulting Practice is committed to the delivery of high impact advocacy and consultative services with the primary goal of optimizing outcomes in the event of a loss or claim. Our approach is to complement your claims efforts in a way that supports your overall risk management objectives by providing tangible value to your risk management team as well as to all of your internal and external constituencies.
From our perspective, effective claims management starts long before a claim occurs. We believe in a claims services delivery model that contemplates skilled resources at all levels to assist you with claims matters that may range from the routine to the complex. As you might expect, we work extensively with various carriers and claims administrators on a daily basis. Our long history with these companies positions us to network effectively on behalf of the customers we serve. We are knowledgeable about the claims service models, information systems, and talent levels on a branch and regional basis.
We know from experience that assertive claims management is critical to your program since you retain a significant share of your claim costs. We will serve to bridge any stagnant service issues or problems by leveraging our relationships with senior management in order to improve your claims management program. We rely very heavily on Risk Management Information Systems (RMIS) for claims oversight. Getting online with the carriers is a fundamental step in our approach.
We believe in a systematic approach to complementing your efforts. It all starts with a services installation meeting to coordinate and customize a service plan. We will review and amend claims handling instructions so that we are appropriately embedded within your process. We will monitor larger problematic and complex claims. We will set an appropriate diary process on those designated claims to ensure adjusters are aggressively managing the files and following up on the recommended file closure strategy.
Our claims consulting professionals are positioned to operate as an integral component of your risk management department. Our claims consulting practice associates have, on average, over 20 years of experience in all lines of insurance as industry claim managers, examiners, and analysts. We are unique in that our claims professionals are strategically deployed to serve on local service delivery teams in our regions yet linked to a national network to foster collaboration, quality control, continuous improvement and innovation.
Client
Risk
Wells Fargo
Claims
Legal
Human
Resources
Outside
Counsel Claimant
Carrier
/TPA
Vendors
Constituencies
Claims Reporting Installation With so many technology options available to facilitate an efficient and timely claim reporting process, we see our role as helping you install the best methods available so that most of your claims can be directly reported to your insurance carrier or claims service provider. As needed, we will consult with you to develop a comprehensive Claim Reporting Manual for your primary property & casualty coverage layer and Wells Fargo Insurance Services’ will report and monitor specialty lines and excess claims. Wells Fargo Insurance Services’ consultants will help you establish turnkey claims processes focused on improving claim outcomes and financial expenditures. While our role in routine claims is more oversight in nature, when difficult coverage issues arise or when there are questions about loss adjustment, we take on the advocate role for our client. As brokers, we are in a position to evaluate coverage positions, interpret coverage language, and leverage our standing in the market to aid and benefit our customers.
Claims Advocacy Wells Fargo Insurance Services’ claim consultants can provide assistance in the claim adjusting process as an ongoing, active member of your risk management team. We provide functional guidance on questions relating to the processing and equitable disposition of claims. As such, we assist with litigated matters, evaluate coverage positions and respond on behalf of our clients to Reservation of Rights and Coverage Declination letters as needed. We coordinate all coverage discussions with insurers and host all meetings needed to bring about a fair, timely and equitable resolution. If a claim requires an outside resource, such as forensic accountants, we can provide various vendor options and recommendations to our customers.
Claims Advocacy Alternative: It’s often said that a broker actually earns its keep when there is a claim. Every customer must expect their broker not only will submit a claim promptly, but follow its progress, provide direction and expertise, and serve as the customer’s advocate. The goal must be a fair settlement based on the circumstances and coverages available.
Our commitment to you is to assure that you receive prompt, fair and equitable handling on all of your claims. We monitor the services of the insurer to ensure that you are receiving professional quality service and to make sure that they are complying with the terms and conditions that have been negotiated on your behalf.
As part of the continuing follow-up on each claim, we evaluate loss reserves and recommend necessary changes through discussions with the company adjuster or with a file audit performed by an experienced audit team. Depending on the nature of the loss, we review each claim and reserve as necessary, but in no event longer than 90 days. We provide periodic loss runs and claim review as needed.
We will be accountable for the following services:
• Establish or enhance your special account instructions for each line of business to ensure that claims are managed in accordance with your company’s policies and guidelines.
• Develop loss reporting procedures to ensure that all claims are reported in a timely manner with the appropriate information. Where applicable, we will prepare written notice of claims, losses and lawsuits to insurance carriers.
• Advise on the presentation of your claims, including coverage reviews and development of proof of loss.
• Review insurers’ reservation of rights, denials, disclaimers, requests for non-waivers, and questions.
• Advocate and negotiate with insurers on disputed coverage issues to obtain favorable results.
• Aid in identifying experts in various disciplines to provide claim accounting, loss development, and evaluations.
• Monitor and consult on claims that involve high severity or adverse consequences to ensure proper investigation, aggressive management, and prompt resolution.
• Arrange meetings or conference calls with insurance company representatives to resolve issues.
• Assist with claim settlements and collecting insurance proceeds, including encouraging advance payments on large losses.
• Provide monthly status reports on all open items to ensure claims are proactively managed to increase recovery and reduce costs.
• Conduct statistical analysis and develop loss reports to evaluate claim costs to assist in the reduction of your total cost of risk.
• Establish customer-specific loss handling procedures with insurers, which allows Wells Fargo Insurance Services to be fully engaged in the adjustment process. Our active involvement allows us to assist you in getting claims closed in the appropriate amount and in a timely manner.
Claims Consulting Services/Capabilities While we meet with our clients at service implementation to customize claims service plans to meet their specific needs, we anticipate providing the following claims consulting services: Pre-Loss Consulting:
• Assist clients in developing/enhancing claim management programs and processes based upon business needs, loss history and management philosophy.
• Perform claims data analytics to flush out trends and identify opportunities to guide us in
our strategy
• Develop specific programs and procedures to address your unique needs and assure the effective management of all aspects of claims i.e. disability management, return to work, and litigation management
• Facilitate services installation including claim reporting training and claim reporting manual
issuance
• Evaluate claim management options such as insured plans, third-party administration programs and self administered programs.
• Facilitate and project manage a competitive selection process to identify the proper claims
administrator based on established criteria including networks, information systems, account flexibility, staff qualification, compliance and controls, pricing and service value.
• We can help design performance metrics and gain sharing programs.
• Develop/Revise special account instructions for insurers and/or third party administrators to assure proper claim handling procedures and communication protocols including reserve advisories, settlement authority, litigation guidelines and other services.
• When applicable, we help designate adjusting teams to improve claim communication and
management
• Educate and train managers, supervisors and/or employees on claim reporting, the claim process, benefits, related costs, newly adopted rules and regulations
• Negotiate access to insurance carrier’s Risk Management Information System (RMIS) and
provide periodic claims reports based on the type and frequency
• Partner with risk control and safety for pre-loss strategizing and planning Post-Loss Advocacy & Consulting:
• Assist clients in evaluating claim strategies and maximizing insurance recoveries
• Provide claim advice and assistance as needed; including resolving any claim handling performance issues that may arise
• Advocate on our client’s behalf on all coverage issues including reservation of rights and
coverage denials
• Conduct strategic claim reviews on a pre-determined frequency to assure that insurers and/or third party administrators are effectively managing claims and aggressively pursuing resolution
• Conduct claim audits to evaluate insurers’ and/or third party administrators’ performance
relative to claim handling best practices and service specifications
• Assist in the timely resolution of the claim including negotiating coverage issues and if necessary escalating the matters with senior management at the carrier.
• Perform quantitative and qualitative loss data analysis including loss triangles, identify
claim trends and opportunities for program improvement
• Develop action plans on complex claims, high exposure claims or high profile claims and provide claim status reports regularly
• Monitor claim reserving practices and negotiate claim reserve levels to reflect probable
ultimate outcome Third Party Administrator (TPA) Marketing & Selection Selecting the right Third Party Administrator (TPA) is essential for effective claims cost management.
An effective TPA is one whose philosophy and organization are compatible with an employer’s goals. Our consultants assist customers with the TPA selection process and on-going performance evaluations so they can gain closer control and ownership of the claims process.
We maintain a vast database of TPA profiles and capabilities so that we can effectively match our customers’ claims management philosophy to that of the appropriate TPA.
We make it a priority to regularly engage TPA local and senior leadership in order to leverage those relationships on behalf of our customers. We maintain detailed best practices to govern TPA selection We project manage the TPA selection process (EXHIBIT) (RFPs, interviews, evaluation, selection, installation). We assess core competencies, pricing, and performance. We assist in performance guarantee design, implementation, and evaluation We interview TPA account managers, supervisors and claim representatives who will be assigned to our customers’ account. We employ our claim audit process to evaluate TPA performance.
As you look to the future of your program, we also feel that there would be a potential need for technical and administrative assistance when marketing to a new carrier or third party administrator. Our claims consultant would serve as a lead resource to you in writing Requests for Proposals (RFP) and coordinating the vendor partner selection process. In addition, we have built a TPA assessment model to help our clients qualify local, regional and national claims service providers by efficiently evaluating responses to the RFP. Our national platform includes access to resources that have formerly served in senior management roles with TPAs and who have an intimate knowledge of the contracting and performance measurement process.
Strategic Claim Reviews With so much at stake in the outcome of a claim, a Strategic Claims Review provides our customers with the opportunity to take an active role in the claim process and thereby make informed decisions. A Strategic Claims Review can provide a CFO or Risk Manager (or designee) with a second opinion regarding reserves and helps drive claim resolution strategies. The process reduces the potential for claims “falling through the cracks” and being neglected by the carrier or TPA for an extended period. It also reduces the risk of financial surprises if reserves are under or overstated. This process is particular important in our efforts to help our customers manage outstanding posted collateral.
Our strategic claim reviews are planned and scheduled discussions with adjusting staff to assess claim handling performance and strategies with the goal of maximizing claim outcomes for our customers. Our methods include in person meetings or teleconference reviews depending on the needs and structure of the program. This process naturally affects closure of neglected files as well as terminal closures of files so that future financial exposures to our customers are eliminated or capped to a known cost.
Claim Review Screen Print Sample:
Claims Auditing Services A Claims File Audit provides a more detailed assessment on how the carrier / TPA is performing compared to industry best practices and customized performance expectations established at program implementation. A claim audit can reduce the risk of financial surprises if reserves are under or overstated and provides recommendations for improvements to the overall claims service program.
The key to a successful audit is to blend a quantitative score with a qualitative review. Simply verifying reserve amounts is not enough. Ascertaining whether reserves are accurate and commensurate with the exposure and probable outcome of the claim is critical.
Although the technical aspects of handling claims should be left to adjusters, the ultimate responsibility for the claims program falls to the employer. Since you retain a significant share of claim costs, cost containment is a key factor in the overall reduction of an employers total cost of risk. The claims audit will focus on the quality and consistency of the work and experience and expertise of the personnel handling the claims.
Although claims administration vendors emphasize performance standards and best practices, an organization must be able to confirm the value of their involvement. With the potential for claims administration fees to run into the seven figures, an audit serves as to tool to verify that claim related expenses are well managed. Claims handling standards are generally memorialized in service agreement or contracts. An audit should measure the quality of services against best practices.
In order to achieve the greatest level of consistency and efficiency, Wells Fargo Insurance Services has developed an Automated Claims Audit Tool (ACAT). ACAT was developed by utilizing the claims industry best practices for claims administration, and merging these best practices with outcome based performance measurements.
ACAT categories examine each critical element of claims administration from claim set-up to final disposition. The tool was designed to allow for client customization.
Utilizing ACAT to compile audit results throughout our organization, we can obtain an aggregate score for claim services providers. We feel that this is a powerful tool to analyze past performance and plan for improvements in the claims handling process.
Claim Audit Screen Print Sample:
Property Claims Consulting Property claims can represent an immediate and tangible stress on business and capital assets. These claims can be complex and involve complicated insurance programs with comprehensive coverage forms that can include obscure language. As such, we recognize that property claims are highly visible to our customers’ executive management teams.
The Property Claims Practice of Wells Fargo Insurance Services is comprised of a select team of highly qualified professionals from our national network of claim consultants. This designated team is strategically positioned to assist our customers in the event of a large or catastrophic event. They provide complex first party property claims consulting and advocacy services to maximize policy benefits and ensure the most favorable outcome for our customers.
We utilize a three phase approach:
Phase 1 – Evaluate and Plan Review the policy and outline coverage, limits, deductibles and limitations Establish communication protocols Advise on accounting procedures for capturing loss detail Phase 2 - Claim Preparation and Submission Assist in tracking and documenting all property damage claimed (repairs, inventory etc.) Submit claim to carrier Monitor timeline for claim process Phase 3 - Adjustment and Settlement Respond to insurer inquiries Prepare rebuttal analysis to respond to insurer differences Assist in final negotiations and settlement
Stagnant/Legacy Claim Closure Projects Wells Fargo Insurance Services realizes the economic ramifications that malingering and unmanaged claims can have on a company’s outstanding liabilities. Utilizing insightful analytics, in-depth audit results and aggressive claims management, Wells Fargo Insurance Services can mitigate these liabilities and assist in closing targeted claims as swiftly and economically as possible. Clients need an advocate who can leverage the marketplace and bridge the communication gap while at the same time providing the expertise and appropriate techniques to push these claims to resolution.
Potential Direct and Indirect Savings Our methodology and expertise have brought about significant savings ratios to our clients. Reductions to their outstanding reserves are often greater than 25% and file closings greater than 40%.
With the reductions in outstanding liabilities, our clients can anticipate: Reductions in their outstanding letters of credits or other collateral obligations Expanded capital for growth Discontinuance of loss development on closed claims Tracking Progress & Results The Scope of Services will include, but are not limited to, the following: Performing an on-line audit of all open files administered by the claims service provider to determine the strategic action plan in place, if any, and to classify the claims through a series of status codes.
Compile a target list of claims that have the greatest potential to resolve through accelerated and aggressive claims handling and monitoring.
Schedule a meeting with the appropriate claims service provider personnel to establish a partnership/team concept for the claims closure project, establish project expectations and secure buy-in/support from senior management.
Provide periodic reports tracking the financial progress of the targeted files and monthly activities associated with reduction project.
WC Claim Special Solutions Wells Fargo Insurance Services provides an innovative solution for clients who are interested in reducing workers’ compensation costs, but do not have the breadth of internal resources to develop and manage their program. Our Workers’ Compensation Solutions Team can be engaged to manage the claim process in its entirety and help lower your Total Cost of Risk. Our turnkey approach includes:
Assuming claim management responsibilities from report through resolution Marshalling Modified Duty Return-to-Work Programs Maintaining OSHA Recordkeeping and State Compliance Posting Notices Creating advanced strategies to reduce the Experience Modification Factor (EMF)
In a typical workers’ compensation claims scenario, claims are reported directly to the insurance carrier. However, greater attention is generally given to claims that reach a certain financial threshold or are considered “problematic” claims. Through early intervention and constructive engagement, we get the claim off on the right foot, resulting in better managed medical care, quicker return to work and more satisfied and productive employees.
Our Clients Can Expect Effective 3 point contact with the employee, physician and carrier/TPA Facilitation of injured employees to approved medical providers Diligent oversight of insurance carrier/TPA protocols Active dialogue on claim progress with client Outcomes Measurement
Resolution of Prior Open Claims Our team will undertake a systematic review and develop an action plan to resolve open claims from prior policy periods. Once we have a detailed understanding of the prior claim history, we will develop an action plan for each claim to shepherd it towards resolution. We will coordinate our efforts with the rest of your Wells Fargo Insurance Services team so collateral issues may be addressed.
Workers’ Compensation claims represent an enormous direct, and even larger indirect cost to employers. Our team has the experience, determination and proven processes in place to provide meaningful, measurable cost savings. Risk Information Solutions / Data Analytics Data Management is the cornerstone of creating and monitoring a comprehensive risk management program. We believe that the power of team collaboration and the impact of data mining is the key to continuous improvement within any organization. As a result, Wells Fargo Insurance Services elected to include Risk Information Solutions within our Risk Services group in order to harness the impact of teamwork in pre-/post-loss risk management efforts as well as to support risk financing efforts.
Risk Information Solutions develops, governs, and supports consistent execution of pre & post loss data analytics strategies that blends internally developed consulting tools with national strategic vendor alliances in order to provide a comprehensive suite of solutions to our clients.
Successful risk information analytics center around three (3) fundamental criteria:
The analysis must be (1) purposeful, (2), insightful, (3) actionable.
Our approach is driven by the core belief that our consultants and clients must be armed with meaningful data to truly understand cause and effect. Technology alone is not enough and is just a means to an end. Intuitive risk information analytics depends on a combination of analytical technologies and skilled professionals. Technology solutions should include predictive modeling and data mining. Our skilled consultants will bring the analytic vision and ability to see the story behind the raw data and help our clients make informed decisions about the course and direction of their risk management program.
Analytic vision varies widely among individuals and is influenced by characteristics such as curiosity, intuition and persistence. Given a set of statistics and metrics, different people will see them in entirely different ways. Those that are inquisitive and intuitive invest the time to dig deeper and uncover areas that our competitors miss. This is where Risk Information Solutions will differentiate the organization from our competitors as many of them stop at the surface.
Customized Data Visualization & Analysis Wells Fargo Insurance Services has the capability to provide a consolidated loss analysis and reporting tool that merges loss data and allows “live” sorting and filtering through a number of criteria including policy year, claim status, claim type, body part, injury type and parameters generally only limited to that captured by the TPA/carrier systems.
Wells Fargo Insurance Services has the capability to provide a consolidated loss analysis and reporting tool that merges loss data available within a “flat file format” (that is files in a *,dbf, *.txt, *.xls, *.csv format where each claim record is contained within one row of data) for both the casualty and property lines of coverage. (A flat file format is readily available through most carrier/TPA online systems and does not usually require additional set up or coordination.)
It can also be further modified to accommodate exposure information (in terms of man-hours, FTEs, revenue, SF, etc.) to provide a means in which to benchmark loss performance across the organization. This tool can be provided on a monthly basis and can be managed by the client or a team member at Wells Fargo Insurance Services.
Suite of National Practice Solutions: Data Consolidation Solutions Custom Dashboards & Trending Analysis Key Performance Indicator Outcomes Tracking Claims Administrator Selection & Performance Metrics Risk Performance Navigators
These customized tools are built around Visual Basic-enhanced Microsoft Office applications, so there is no need for additional resident software beyond what is available within the standard office software suite. They also reside on the client’s local or networked drive, so there are no additional security procedures required.
Allocation Models: Our Capabilities Wells Fargo Insurance Services has developed several methodologies to address the allocation/chargeback process for clients in numerous industries. These models not only handle the financial accountability of the risk allocation process but have also been built to address behavior and activity-related issues such as return to work and early reporting.
Customized Dashboard Analysis Screen Print Samples:
LOCATION (All) Data Value as of: 12/31/2009COVERAGE WC Effective Date: 6/30
AGE GROUP PAID TOTAL OUTSTANDING TOTAL INCURRED TOTAL AVERAGE PAID TOTAL CLAIMS # OF OPEN CLAIMSUnder 20 Years $486.06 $0.00 $486.06 $162.02 3 0
20-30 Years $11,692.66 $2,000.00 $13,692.66 $343.90 34 130-40 Years $127,764.20 $164,540.78 $292,304.98 $1,799.50 71 440-50 Years $308,105.55 $26,434.78 $334,540.33 $4,668.27 66 550-60 Years $190,663.49 $43,446.05 $234,109.54 $2,723.76 70 7
Over 60 Years $32,840.66 $16,213.87 $49,054.53 $2,052.54 16 2Not Available $110,294.47 $0.00 $110,294.47 $13,786.81 8 0Grand Total $781,847.09 $252,635.48 $1,034,482.57 $2,917.34 268 19
AGE GROUP BY INCURRED AND FREQUENCY - WC
$0.00
$50,000.00
$100,000.00
$150,000.00
$200,000.00
$250,000.00
$300,000.00
$350,000.00
$400,000.00
Under 20 Years 20-30 Years 30-40 Years 40-50 Years 50-60 Years Over 60 Years Not Available
Incu
rred
0
10
20
30
40
50
60
70
80
Tot
al C
laim
s
INCURRED TOTAL TOTAL CLAIMS
COVERAGE
RESERVE TYPE
CLAIM COST PAYMENT DETAILCLAIM COST BY COVERAGE LINE COSTS BY RESERVE
WC PAYMENT TYPES
72%
28%
WC AL
$0 $50,000 $100,000 $150,000 $200,000 $250,000 $300,000
Perm Partial
Temp Total
Temp Partial
Voc Rehab
Legal
13%
45%
42%
MED EXP CLM
WC
WC
CLM
6,539,02439,234,144
46.9%53.1%1.10%52.0%$318,544,124
NON-NETWORKIN NETWORK$378,854,976
ESTIMATED MBR FEES $45,761 ,017.68$2,170,169,537.02ESTIMATED NET SAVINGS
$2,215,930,554.70
PROPORTION OF SAVINGS
MEDICAL BILL REVIEW ANALYSIS DASHBOARD
GROSS SAVINGSPAID AMOUNT
BILLED AMOUNT
NETWORK v. NON-NETWORK
PPO PENETRATION
$4,170,244,010.29$1 ,954,313,455.59
TOTAL # OF BILLSTOTAL # OF LINES
SAVINGS PER DOLLAR BILLED
AVERAGE BILL/PAID
AVERAGE BILLEDAVERAGE PAID
AVERAGE SAVINGS
$637.75$298.87$338.88
59%
41 %
In-Network Out of Network
BILL COUNT SAVINGS
1 7%
50%
29%
4%Total PPO Savings
Total FS/U&C Savings
Duplicate Charges
Enhanced Savings
FEE SCHEDULE/U&C
54%
46%
In Network Out of Network
FEE SCHEDULE/U&CPPODUPLICATE CHARGESCLAIM ADJUSTMENTHOSPITAL BILL REVIEWNON-COMPENSIBLETREATMENT PLANOTHER ENHANCED
Risk Control/Safety Risk Control/Safety Introduction Content Loss prevention efforts are one of the most important investments an organization can make when building and sustaining an effective risk management program. Beyond a lower total cost of risk, an effective risk control program can have a significant impact on employee and customer satisfaction, market reputation, and stability of earnings.
The most successful programs require that proper attention is given to the engineering process, culture, and financial areas of the business. An effective program must be able to match the technical aspects of risk control with the culture and business needs of the organization.
Our consulting team provides client services that will assure regulatory agency compliance, establish innovative loss reduction best practices and assist management in developing & implementing engineering and management controls to combat loss potential. The services we offer will be tailored to a written action plan to your specific needs and requirements. Expertise
Our risk control staff has demonstrated their skills repeatedly by implementing practical risk management solutions for our customers in a wide range of industry sectors as well as diverse technical fields. Customers have access to our comprehensive national network of experts to ensure they get the right solution. Areas of expertise include:
Risk Evaluation, Analysis and Benchmarking Performance Measurement (Risk Performance Navigator) Workplace Violence Workshops Management Training on Risk Control Topics Safety Program Evaluation Culture Based Safety Wellness Program Consultation Safety Leadership Workshops Ergonomic Consulting Fleet Safety Consultation Property Protection Emergency Planning Customer Advocacy and Coordination of Carrier Services Risk Management Information Systems (RMIS) Solutions Wells Fargo Insurance Services’ risk consultants hold the following certifications: ALCM, Associate in Loss Control Management ARM, Associate in Risk Management CBCP, Certified Business Continuity Planner CFPE, Certified Fire Protection Engineer CIE, Certified Industrial Ergonomist CIH, Certified Industrial Hygienist CISR, Certified Insurance Services Representative CPCU, Certified Property & Casualty Underwriter CPE, Certified Professional Ergonomist CSHM – Certified Safety & Health Manager CSP, Certified Safety Professional OHST, Occupational Health & Safety Technologist REHS - Registered Environmental Health Specialist It would be our goal to work with you to develop specific programs designed to address historical claim trends, or identify new trends which may develop. Some services designed to assist in these areas are outlined below. Ergonomics: The consultants at Wells Fargo Insurance Services partner with our clients to identify, target and correct specific ergonomics issues and concerns. We focus on keeping employees fit, working, and productive. We incorporate both engineering and administrative controls to reduce workplace risk factors and increase overall productivity. We assist our clients with designing/re-designing projects to create work areas that are best suited to the staff and work processes. Our consultants also offer a variety of trainings to educate the workforce on ergonomics principals and human factors. Our philosophy is to utilize basic ergonomics principles to reduce musculoskeletal disorders, improve the overall work processes, and increase productivity. Our ergonomics programs are geared to sustain the ergonomics effort after the consulting project has ended. Employee Education & Training: Wells Fargo Insurance Services risk consultants offer training to supplement our clients’ written programs and initiatives. We have specific expertise with creating customized programs to reinforce safe procedures in all operations. Our
communications and training modules introduce and educate newly implemented policies and procedures, as well as, reinforce and revitalize existing programs. We utilize a multiple sources to deliver and support the programs. Our methods include brochures, payroll stuffers, posters, as well as formal training programs. Our formal training programs combine classroom/lecture with hands-on activities to maximize the effectiveness of adult learning. All communications and training programs are customized for each client and can be delivered as train-the-trainer models. Behavioral safety: Wells Fargo Insurance Services’ behavioral program minimizes work disruptions and utilizes positive reinforcement to modify undesirable behaviors. Our process enhances desired behaviors while reducing at-risk behaviors. We can customize our behavioral service offerings to incorporate best practices in retail operations to address working with customers, back room storage practices and other retail specific operations. The results of behavioral programs are improved employee performance with reduced variability in work practices. Multiple studies have credited successful behavioral programs with significantly reducing employee accidents and related costs. Violence Prevention: Wells Fargo Insurance service can assess physical security programs and procedures, create customized written policy, develop and conduct supervisor and manager training programs as well as employee seminars, and, develop pre-screening and hiring guidelines, including layoff and downsizing procedures. Our violence prevention program is fully customized to our clients’ existing human resource and disciplinary policies. Life Safety: Wells Fargo Insurance Services’ comprehensive life safety consulting services range from physical surveys, to evacuation procedures, to “you are here” maps. We can also assist clients with creating functional evacuation procedures and drills to test the effectiveness of these programs Environmental: Wells Fargo Insurance Services’ Environmental Consulting Practice offers a wide range of environmental services, including: site inspections, permit review, environmental sampling, overseeing the removal and installation of underground storage tanks and preparing abatement and site characterization reports. We offer comprehensive, three tiered approach to environmental audits. Our audits include pre-audit questionnaires to familiarize our consultants with the operations at the site, the physical survey, and, an environmental impact assessment to identify any changes to the environment resulting from an organization’s activities, products or services. Business Continuity Planning: Wells Fargo Insurance Services Business Continuity Consulting Practice helps clients maintain critical operations by systematically identifying critical business functions, prioritizing their impact to the business, and developing cost-effective recovery strategies to minimize disruptions to these operations. Our Business Continuity Consulting group has extensive expertise with all aspects of Business Continuity from business recover, to Disaster Recovery, to emergency response to crisis management. Our plans address seasonal issues, supply chain, vendor/customer agreements, and communications protocols. We also assist clients with plan maintenance and facilitate testing exercises. Technology/Summit Online: At Wells Fargo Insurance Services, we are committed to assisting our customers in reducing their total cost of risk. This cannot be achieved without influencing the behaviors of employees and training them in how to work safely. Wells Fargo Insurance Services now offers customers with a value-add solution by offering an online training resource that can help them successfully train employees. Our value-added tool through Summit Training Source, is the premier resource for environmental, health and safety training solutions. Summit’s safety training programs are expertly researched and use the latest adult learning theory and instructional design techniques. All programs are technically accurate and reviewed by content experts and OSHA trainers to ensure accuracy. Each program uses stimulating visuals, and filming is accomplished in
an actual workplace with real workers. Summit programs are designed to create an awareness and respect for workplace hazards and reduce incidents, accidents, and associated costs. Industrial Hygiene (IH) AQ and work environment complaint diagnostics (Phase 1) Review Site assessments to identify and evaluate occupational disease hazard potential: noise; airborne particulates; volatile organic compounds; contaminants Sampling plan development and coordination for noise, airborne particulates; volatile organic compounds; contaminants Holistic industrial hygiene programs Quantitative and Qualitative exposure assessments Industrial hygiene training courses for your staff Blood borne Pathogen training Respiratory Protection program development and training On-staff Certified Industrial Hygienist to oversee/monitor industrial hygiene services Strategic partnership with outside industrial hygienists and laboratories to help resolve advanced issues when needed (i.e. mold/microbiological) Property Engineering/HPR Wells Fargo Insurance Services boasts our own staff of experienced in-house property risk control engineers who focus on providing strategic input and support to your corporate (domestic and global) property program. We also have strategic partnerships with vendors where more tactical Property Risk Control services are needed. (i.e., regular inspection services in property and boiler and machinery) We align these complementary resources where appropriate to best deliver a complete solution in the most cost effective and efficient manner. Wells Fargo Insurance Services’ property risk consultants are advocates and advisors, working side by side with our property brokerage staff and functioning as an extension of your risk management (or equivalent) staff. Our philosophy is that a strong property risk control program will not only assist with decreasing property exposures and service interruptions, but over the long-term, will help keep insurance premiums in check and increase long-term insurability. Our services include: Property Risk Identification/Site Audits We can help you meet your property risk management goals. We work closely with you to determine a long term strategy on specific facilities, operations, etc. and the associated exposures that qualify for remediation tactics.
Carrier Advocacy and Alternative Solutions Our consultants are well connected to the property risk control technical field, which is constantly changing. We consult with you and other stakeholders to explore alternative solutions which can help address a carrier recommendation at a much lower cost. We can also work to alleviate some recommendations do to changes in codes and standards. We are highly focused on minimizing the total cost of risk of your insurance program and that includes capital expenditures on property protection. Cost-Benefit Analysis We can help you assess if the cost of compliance with property protection recommendations is economically feasible and practical. This is accomplished by assessing the actual exposure to your business in your terms and measuring the impact on upgrades that are intended to reduce the exposure to a risk.
Construction Project Fire Protection Services We can assist with developing detailed fire protection and life safety specifications during a construction project and facility design. We work closely with the construction team and the architect design engineers to provide consultation relative to the building’s design, construction and materials. We also provide pre-construction surveys to evaluate water supplies, protection requirements and natural hazard exposures. General Fire Protection Consulting Wells Fargo Insurance Services can assist with evaluating assets and assessing loss scenarios to better enable you to protect and adequately insure your assets. Our services include: benchmarking valuations, analyzing loss expectancies, cost-benefit analysis, plan review, code dispute and loss investigations. We conduct full interdependency studies and evaluate supply chain exposures and contingent business interruption exposures to determine vulnerabilities and solutions.
Property Allocation Wells Fargo Insurance Services has the ability to create custom allocation methodologies for our client’s property insurance programs. In addition to retentions, standard exposures and location values, our allocation models can take into consideration other property factors including COPE (construction, occupancy, protection and exposure) and local management’s efforts in reducing their loss exposures. By providing rewards (and penalties) based the reduction (or increase) in Normal Loss Expectancies (NLE) or Probable Maximum Losses (PML), managing the organization’s property exposures can be financial rewarded.
Property Schedule Web Portal Administrating a property portfolio with global exposures is a daunting and potentially a time consuming task. Through Wells Fargo Insurance Services commitment to using technology to improve our client’s workflow, our team can create an encrypted and secure web portal for local management to login and add, delete and revise their individual property schedule. This provides our Clients with a convenient and readily accessible method to ensure its property insurance schedule is complete and accurate. Fleet Risk Control Vehicle-related accidents are the leading cause of workplace fatalities and present risks to a business's reputation. To reduce our customers' exposures to insurable losses and regulatory penalties, Wells Fargo Insurance Services has aligned its risk control consulting resources to focus on on-road vehicle operation risk reduction. Consistent with other risk control offerings, Wells Fargo Insurance Services’ fleet consulting services normally begin with assessment activities followed by support for improving customer risk profiles. Selected service areas include the following:
Fleet Assessments: Customer fleet safety management systems can be evaluated
according to criteria established by the Department of Transportation (DOT) or the American National Standards Institute (ANSI). The former applies to regulated interstate commerce while the latter is more broadly applicable. By benchmarking customer policies, practices, and records regarding vehicle and driver management practices, customers can gauge their risk control efforts and plan effectively for improvement.
Program Development:
Creating policy and procedure language that is appropriate for a given fleet size, complexity, and degree of control is necessary for scattered auto fleets as well as major carriers. Wells Fargo Insurance Services can tailor programs that
Fleet Team Services (D.O.T. Compliance Solutions) Wells Fargo Insurance Services possesses one of the insurance broker community’s most robust fleet safety offerings. Our Fleet Team Services keeps our customer’s in touch with the changes in D.O.T. with a monthly newsletter providing updates of legislative changes, training requirements and news from the Department of Federal Motor Carriers. Our Fleet Team Services has policies and training materials in place for DOT drivers; Load Securement, Defensive Driving, Hours of Service training, Drug & Alcohol policies and training, and much more.
Our Fleet Team Services also has the tools, knowledge and skills to track the paperwork for Driver Qualification files that is mandated by Federal Motor Carrier Safety Regulations. We custom-design the Driver Qualification packet and coordinate completion of all DOT required paperwork. A partnership with our Fleet Team will allow receipt of two reports, the “Driver Report" and the “Audit Report”. These reports will cover all states and will accurately inform them monthly of their current drivers and list specifically what drivers are missing for a complete driver qualification file up to 60 days in advance.
Look To Fleet Team Services To Stay D.O.T. Compliant Many people believe that if you have a valid commercial driver’s license (CDL), you are automatically qualified to step into a commercial motor vehicle and drive. This could not be further from the truth! Regardless of whether you are an owner or a company driver, there are certain requirements that have to be met before a person can start driving a commercial vehicle. If these requirements are not met, your company could incur very costly fines. The Fleet Team Services professionals of Wells Fargo Insurance Services have the experience and knowledge to keep your drivers in compliance and on the road. Solutions For A Compliant D.O.T. Fleet Fleet Team Services provides driver qualification management services to companies and drivers nationwide. Our custom-designed systems were created to serve a wide variety of companies of any size or location.
balance best practices with practicality.
Technical References: Wells Fargo Insurance Services’ fleet risk control specialists maintain access to regulatory, technical, and best practice information. Our consultants assist customers in learning more about a hazard, control measure, or regulatory requirement.
Management Education:
Safety culture is driven from the top of an organization. Therefore, those with leadership responsibility over fleet operations need to understand the importance of controlling fleet-related risks and the process of installing and administering a program. Wells Fargo Insurance Services can help deliver that message through targeted training and presentations.
Vendor Information: Third party vendors associated with fleet safety range from traditional products (i.e. MVR services, 1-800 feedback services, defensive driver training, etc.) to emerging areas (i.e. in-cab cameras, "black box" monitors, load securing, hardware, etc.). Wells Fargo Insurance Services can assist customers in identifying vendors and suggest purchasing criteria.
Driver Qualification File Management includes: Initial customer consults and file audit Customized database and forms Training/guidance for managers and administrators Company specific new hire packets Monthly driver Outlook Audit Reports Monthly Current Driver Report Monthly newsletters Vehicle accident reporting kits Motor vehicle records (M.V.R.) Additional Services: Complete regulatory consultation services 800 number for customer service D.O.T. written policies (including fleet and substance abuse policies) Federal Motor Carrier Safety Regulation pocketbooks ($4.00 per book) Driver qualification file management ($5.00 per driver/month - $100 minimum per month) Customer location consulting ($150 per hour includes on site auditing, research, etc.)
Fleet Team Services is dedicated to providing an affordable approach to D.O.T. administrative Services to reduce insurance premiums, driver downtime and driver turnover Risk Performance Navigator Wells Fargo Insurance Services Risk Consulting is committed to promotion of best practices and risk management improvement that is tangible and measurable. We do this by focusing on Risk Management Quality (Leading Indicators) and correlating these to losses and loss potentials (Trailing Indicators). Our experience has shown the strong correlation between the management of such upstream areas as pre/post loss planning and execution, and the impact of the downstream areas such as claims frequency and severity. By building our strategy around these elements, we are able to effect organizational-wide change that results in the reduction in the overall cost of risk. This is the foundation of our risk quantification process, the Risk Performance Navigator. This risk management measurement process has several benefits including: Risk Management Quality can be measured throughout an organization, division or even at the local/department level, regardless of loss activity. This allows a company to create a benchmark for Risk Management performance and to measure progress. One of the axioms of management is “what gets measured, gets done.” This is true of Risk Management Quality. Once the benchmark has been established, Risk Quality measures are an effective management tool to hold divisional and location leadership accountable for results and performance.
Quality measures provide an equitable means for an organization to evaluate local Risk Management efforts rather than just claims activity or premium allocations. The cost of risk is impacted by local and proximity issues besides quality ones (i.e. workers’ compensation in California). Favorable Risk Management performance can be recognized even as an organization is managing through such difficult environments.
A risk quality approach provides the Risk Manager a means to demonstrate success in program development and execution, although their cost of risk has been impacted significantly due to external factors (jurisdictional, market, etc.)
The goal of measuring Risk Quality is not to focus on compliance (whether to internal corporate standards or external regulatory or industry requirements), but to concentrate on areas where the company can reduce their exposures to loss and overall cost of risk. Our consultants begin by conducting a detailed operational and functional analysis of your organization along four major disciplines within risk management including: Claims Management and Post Incident Procedures Loss Prevention and other pre-loss activities and planning RMIS and other strategic use of information systems Financial accountability and allocation Based on the results of the analysis, interviews and observations, the quality of the risk management program is judged against recognized industry best practices along six general categories, covering a total of 38 major subject areas. Software has been built around the Risk Performance Navigator that allows for the efficient collection of data and information during the process to be analyzed and compared. This allows Wells Fargo Insurance Services Risk Consultants and our business partners to not only “roll-up” the results of the assessments to evaluate performance across the organization, but it also provides a ready benchmark to compare performance and results against our overall client base. Environmental Risk Control Success of any organization is not an accident. It is the result of careful planning, execution, measurement and follow-up of management initiatives. Our Risk Consulting practice measures our effectiveness in terms of reduction in the cost of risk, as well as the improvement of risk management quality. Wells Fargo Insurance Services is experienced in assisting our clients with designing and implementing a cohesive environmental risk control strategy. Our primary role is to serve as strategic advisors to our clients so that they can make informed decisions relative to the management of their environmental risk exposures. We serve to raise awareness of past, present, and future potential exposures generated by internal operations or risks associated with outside parties doing business in or around our clients’ facilities and operations. We will guide our clients on tactical measures utilizing technical resources from within our national network of risk control consultants as well as specialist resources from qualified third party environmental firms. Environmental Risk Evaluation Process The key component of our approach is the Environmental Risk Evaluation which serves to assist in the evaluation and assessment of past and present practices relative to exposure and control of water, air, and ground pollution risks. These evaluations have proven to be of significant value in helping our clients evaluate their environmental risks and determine what additional management measures are necessary to reduce or prevent environmental liability.
During our Environmental Risk Evaluation, we will perform a systematic review of operational procedures to identify hazardous materials, waste streams, handling, storage and disposal practices, and other current environmental management programs. Key elements of our Environmental Risk Evaluation: Review of written policies and procedures, operating practices, and all available documents relative to the handling, use, and disposal of hazardous materials Management interviews to assess the understanding of responsibilities expected to appropriately manage and control environmental exposures
Survey facility operation(s) to observe and assess exposures and physical controls as well as feasibility of proposed recommendations Issue management report intended to identify strengths and weaknesses of the overall environmental program, raise appropriate awareness of exposure to environmental liability, and make recommendations designed to address program deficiencies Environmental Risk Assessment Similar to an Environmental Evaluation, this service to targeted to showcase our clients in the best possible light to interested markets. We serve to assist our client broking teams in accurately presenting client operations, extent of exposures, mitigation efforts, program strengths, and plans for additional improvements to the underwriting markets. Our assessment includes:
Overview of Operations Policies and Procedures Company environmental policy Management Commitment Roles and Responsibilities Hazardous Material Use Above and Underground Storage Hazardous Material Transport Hazardous Waste Management Environmental Impact Analysis for Air, Land, Water Emergency Response Documentation Review Surrounding Exposures (residential, commercial, drinking water, surface water, ground water) Historical Issues (EPA/State Agencies, public claims, evidence of contamination based on studies, major leaks and spills, minor continuous leaks) Property Remediation Issues Network of Third Party Environmental Consulting Firms (Sample List) Bureau Veritas Veolia Versar Clean Harbors Environ FlagshipPDG WC Related Risk Control Safety Management and Program Development Risk Control Program Assessment & Benchmarking Culture Change Projects -Assessments, Workshops and Facilitated Change Ergonomic and Material Handling Evaluation and Consulting Quarterly Claim Analysis: Frequency/Cost benchmarking and trend analysis Support for development of cost allocation programs Safety Training and Orientation Programs Targeted shop visits to locations experiencing highest frequency and cost trends for local manager support in implementing safety tactics Training at manager/supervisor level in OSHA-required employee safety protocols
Management and Supervisor Accountability Programs Leadership/Management Workshops Total coordination of all Insurance Carrier Services JSA development and documentation – use in employee task assignment and RTW efforts Access to Summit Training Source® On-Line Training resources: full suite of video and training programs to support WC training initiatives (where/if needed)
Available Resources for Global Loss Control Efforts Although the basics of loss control and safety are consistent regardless of where you are located or operating, we all realize that businesses with global operations face unique risk and opportunities. The risks begin with the every-changing international insurance laws and regulations and can escalate to include political instability, social unrest or otherwise undesirable exposures. Indentifying and understanding your global risk management needs is the first step in developing a plan to manage and mitigate your international risk. The overall strategic Loss Control Delivery Plan is then established which specifically addresses how the corporate – US Domiciled Loss Control Plan is expected to integrated at each international location and the various on-site needs. Please refer to the Risk Control Solutions for your Business brochure which has been included with this RFP Response for a detailed outline of our loss control, claims and safety services available to each of Wells Fargo Insurance Services’ clients.
As a global business intending to drive the overall management of your global insurance placement and risk control efforts from the US you will need an effective platform for delivery of that process. Using leading edge technology we manage and control the global communication process between all parties involved. Our structured communication process and technology platform enables all parties to understand:
The platform also enables our global clients to communicate their specific loss control policies and procedures to all international subsidiaries in real time, seamlessly communicating your global
program information. More information follows on the complete capabilities of this platform, CyberSure.
Additionally, as a client of Wells Fargo Insurance Service, The City of North Miami Beach will also have access to our on-line Safety Training which provides over 120 online safety courses which provides a very effective way to provide safety training to your US domiciled employees located internationally or for your English and Spanish speaking global subsidiary companies. A brochure has been provided later in this response providing more details on this program.
Library of Screen Prints/Visuals:
The following case studies and key strategies show our innovative approach to risk management. It is our ability to dive deep into issues and provide true results that separates us from our competition. Case Study #1 Elimination of Wholesale Intermediary owned by Incumbent Broker We took over a placement with numerous insurers, a very large roll for a wholesaler owned by the placing broker with a total expiring premium of $2,647,786, including Terrorism. We eliminated the redundancies in broker/ owned-wholesaler compensation, reduced the number of insurers, and aggressively marketed the program. Due to our efforts the premium was reduced to $1,716,142 saving our public entity client $931,644. This was based on total values of $3,418,377,544. Case Study #2 State Agency acquires contaminated land from Another State Agency State Agency acquires land from another State Agency that had operated the land for over 100 years. A long term leak from an underground storage tank pipe system had created a 40 acre plume of gasoline in the groundwater. Our objective was to develop a solution to transfer the environmental
Measures & Rewards
People Structure & Policies
Engineering & Technology
World Class Safety
Heroes/Heroines
Social Processes
Leadership
Trust
Norms
Rituals
Symbols
regulatory cleanup liability to an environmental firm at a guaranteed fixed price to avoid budget surprises and to provide environmental insurance to backstop the contractual guarantee and to provide coverage for any toxic tort liability. Case Study #3 Hidden Costs Buried in TPA Contract Language As part of our initial assessment and due diligence, we uncovered many “hidden” costs buried within carrier/TPA contract language. We realized that the client costs were based upon a percentage of savings and that by simply shifting to a “fee-per-bill” approach our customer would save thousands of dollars.
Year Number
of Bills
Bill Savings
Fees to Client 27% of savings
Fees to Client $9 per
Bill
Savings Using per bill charge
08 Gr Yr.
168 $26,718 $7,213 $1,512 $5,701
07 680 $129,213 $34,887 $6,120 ($28,767) 06 1,225 $241,718 $65,263 $11,025 ($54,238) 05 1,112 $185,558 $49,830 $10,008 ($39,822) Total 3,185 $583,207 $157,193 $28,665 ($128,528)
Key Strategy #1 Exposure Monitoring Our review of the 2011 Budget provided some details for WFIS to examine as it responds to this RFQ. Risk Management has reported that The Property & Casualty Unit had successfully updated its master list and current protocols and procedures are in place to maintain its accuracy. We would recommend than in addition to the above careful examination of values by location be included so that current construction cost and replacement value be updated in anticipation of renewal of the property program. A significant drop in local construction cost has been observed by WFIS in review of hundreds of replacement cost appraisals. If in fact values have not been updated in the last several years these changes could have a dramatic impact on the total cost of the property program. Key Strategy#2 Financial Analytics The City has accomplished some key objectives including:
• Improving reporting and obtaining data for better case analysis to determine cost drivers,
exposures and to explore ways of prevention and associated risk management • Secured coverage for the multiple police and fire vessels in lieu of self insurance
Our Financial Analytics Practice could help reduce the overall total cost of risk by complementing those efforts presently being performed by Risk Management to further provide additional Analytics to support decisions regarding Risk Bearing, Loss Projections, and Risk Retention. Using cost of risk allocation strategies could further help the city manage its efforts to control losses by making different departments aware of the impact and cost of risk.
11. How will you assist with making recommendations to improve the benefits program/what benefits to offer, identifying shortcomings, and compliance problems? Outline the process that your firm would use to evaluate overall effectiveness.
12. Cite major complaints, claims or lawsuits, if any, pending against the firm and
that would be considered material to the firm’s financial status. We have no active or pending major complaints, claims or lawsuits that would be considered material to our financial status.
13.
Provide a copy of an executed analysis for a sample customer, to include:
• •
Review of Benefit Design
• Cost Management
• Contribution Strategy Benefit Evaluation
Section 4
Proposed Fee for Service
Proposed Fee Flat Fee of $24,500 (Inclusive of Original and Expanded Scope of Services) Since it is not possible to have commissions netted out of Flood Insurance Policies or Rebate Flood Commission, this fee does not include placement of any Flood Insurance Policies. The Flood Insurance Company(s) pay a usual and customary 22% commission. Our proposed remuneration is flat except for the Flood Insurance Policies.
Section 5
Acknowledgments
RFP Acknowledgement (Form 6.1) Statement of “No” Nid/RFP (Form 6.2) Not-Applicable Reference Questionnaire (Form 6.3) RFP Signature Page for Corporation (Form 6.4) RFP Signature Page for Sole Proprietor or Partnership (Form 6.5) Not-Applicable Drug Free Workplace Program (Form 6.6) Soliciting, Giving and Acceptance of Gifts Policy (Form 6.7) Non-collusion Affidavit (Form 6.8) Source of Information (Form 6.9) Respondents Certification (Form 6.10) Sworn Statement on Public Entity Crimes (Form 6.11) Signed Acknowledgment of Addendum 1 Signed Acknowledgment of Addendum 2
RFP No. 2012-25 Insurance brokerage services
Page 35 of 47
6.2 STATEMENT OF “NO” BID/RFP If your company shall not be submitting a response to this Request for Proposal (RFQ), please complete this Statement of “No” Bid Sheet and return, prior to the RFQ Due Date established within, to: The City of North Miami Beach Procurement Management Division, Room 315 17011 NE 19th Avenue North Miami Beach, Florida 33162 This information shall help the City of North Miami Beach in the preparation of future Bids and RFP's. Bid/RFP/RFQ Number: ____________________________ Title: ________________________ Company Name: ____________________________________________________ Contact: __________________________________________________________ Address: __________________________________________________________ E-Mail: __________________________________________________________ Telephone: ____________________________ Facsimile: ____________________
√ Reasons for “NO” Bid:
Unable to comply with product or service specifications.
Unable to comply with scope of work.
Unable to quote on all items in the group.
Insufficient time to respond to the Invitation to Bid.
Unable to hold prices firm through the term of the contract period.
Our schedule would not permit us to perform.
Unable to meet delivery requirements.
Unable to meet bond requirements.
Unable to meet insurance requirements.
Other (Specify below)
Comments: _____________________________________________________________
RFP No. 2012-25 Insurance brokerage services
Page 36 of 47
6.3 REFERENCE QUESTIONNAIRE
It is the responsibility of the contractor/vendor to provide a minimum of five (5) government agency references other than North Miami Beach using this form and providing this information with your submission. Failure to do so may result in the rejection of your submission.
Giving reference for: (Bidder)_______________________________________________________________
Firm giving Reference: ___________________________________________________________________Address:___________________________________________Phone:____________________________________________Fax:______________________________________________Email: ___________________________________________
1. Q: What was the title of the contract or job assigned to Bidder?A:
2. Q: What was the scope or work/services assigned to Bidder?A:
3. Q: What was the dollar value of the contract?
A:
4. Q: Have there been any change orders, and if so how many?A:
5. Q: Do they perform on a timely basis as required by the agreement?A:
6. Q: Was the broker easy to get in contact with?A:
7. Q: Would you use them again?A:
8. Q: Overall, what would you rate their performance? (Scale from 1-5)
A: 5 Excellent 4 Good 3 Fair 2 Poor 1 Unacceptable
9. Q: Is there anything else we should know, that we have not asked?A:
The undersigned does hereby certify that the foregoing and subsequent statements are true and correct and are made independently, free from vendor interference/collusion.
Name: __________________________________________ Title _____________________________________________
Print Name: ______________________________________ Date: ___________________________________________
Port of Palm Beach DistrictOne East 11th Street Suite 600, Riviera Beach, FL 33404(561)383-4147
Property & Casualty Insurance Program
Property & Casualty Insurance Program
$895,355
None
Wells Fargo Insurance Services USA Inc
(561)842-4240
Yes
Yes
Yes
November 26th, 2012
Chief Financial Officer
Paul Zielinski
11/26/12
Insurance Organization Chart
Jeannette PougetExecutive Assistant
Kevin KennyHead of Insurance Brokerage & Consulting
Scott IsaacsonHead of Insurance Strategy & Carrier Mgmt.
Anne DossHead of Personal and Small Business Insurance
H David WoodHead of Insurance Operations
Kevin BroganCo-Head of National Practices and Special Risk
Donna Langer-HansenOperational Risk & Compliance
Ken FraserCo-Head of National Practices and Special Risk
Martha SmolenHead of Marketing, Communication & Learning Stragies
Mike DayHead of Rural Crop Insurance Services
Neal AtonConsumer Projects
Paul ReimerTechnology
Wayne RobinsonLegal
Todd WartchowFinance
Rhonda WattonHuman Resources
Laura SchupbachHead of Wells Fargo Insurance
